The cryptocurrency market experienced a pullback on Tuesday, following Monday's significant price increase. Bitcoin (BTC) consolidated at around $73,000, after hitting a monthly high of $76,000 earlier in the day.
Derivatives positioning remains broadly bullish, with rising open interest and long bias in BTC futures. However, the average relative strength index (RSI) remains firmly in 'overbought' territory, suggesting further drops towards $72,000 may be on the cards.
The altcoin market suffered a deeper pullback than the major cryptocurrencies, with some tokens dropping more than 5% after Monday's rally. Despite this, risk appetite remains intact, as indicated by CoinMarketCap's 'altcoin season' indicator, which remains at its highest point since the start of the year.