Bitcoin hovered near key support levels on Wednesday, slipping below the $76,000 threshold identified by Bitmine Chairman Tom Lee as a signal for a potential end to the bear market. The broader crypto market showed signs of weakness, even as a handful of tokens posted gains.
BTC was trading close to $75,000 after failing to break above $78,000 the previous day, leaving the market at a critical juncture. Ether followed a similar path, with the second-largest cryptocurrency rejected at $2,150 before sliding toward $2,000 support. After briefly dipping, ETH rebounded to around $2,080 in early Wednesday trading.
Gains from Tuesday’s rally in AI-linked tokens such as RENDER, FET and NEAR quickly faded, with prices dropping between 1% and 3% since midnight UTC.
Meanwhile, U.S. equities continued to diverge from crypto markets. Futures tied to the S&P 500 and Nasdaq 100 edged to fresh record highs, rising roughly 0.3%.
Bitcoin’s position below the $76,000 level remains significant. Tom Lee has previously said a monthly close above that mark would indicate a transition out of a bear market, making current price action a key test for sentiment.
Derivatives data points to rising bearish positioning. Crypto futures volume surged 54% to $201 billion over the past 24 hours, while liquidations jumped 87%, reflecting renewed activity following a holiday slowdown rather than a structural shift.
Bitcoin fell about 1% during the period even as open interest climbed from 704,000 BTC to 740,000 BTC, a combination typically associated with strengthening downtrends. A negative cumulative volume delta (CVD) suggests traders are aggressively entering short positions, while funding rates remain neutral.
Ether’s open interest reached a record 15.57 million ETH alongside negative CVD, indicating increased short positioning following a breakdown of the bullish trendline that had held since February.
Elsewhere, ZEC futures open interest declined for a third straight session to 2.30 million tokens as prices fell toward $564, suggesting traders are closing long positions rather than initiating new shorts.
Volatility is also beginning to pick up. Bitcoin’s 30-day implied volatility index rose nearly 3% to 37.35%, marking its first increase in 10 days and rebounding from yearly lows. Continued gains could signal growing demand for downside protection.
Options data from Deribit shows the $55,000 September put as the most actively traded contract in the past 24 hours, highlighting expectations of a potential sharp decline. Activity has been concentrated on protective positions between $70,000 and $76,000.
Sector performance remained mixed. The CoinDesk Computing Select Index fell 2.2% amid broader weakness in AI-related assets, while the DeFi Select Index dropped 1.5%.
However, not all tokens followed the downturn. Hyperliquid’s native token (HYPE) extended its rally, hitting a fresh record high this week and climbing 5.5% on Wednesday. Monero also posted gains, rising 5% as it approached the $400 level.
CoinMarketCap’s Altcoin Season Index ticked up to 36, indicating pockets of strength among select altcoins despite the broader market’s cautious tone.
