Bitcoin is holding within a narrow $64,000-$66,800 range after a strong 13% recovery from July’s lows, as traders wait for a clearer signal from broader markets. WLFI stood out as the biggest mover of the day, surging 12%.

The cryptocurrency market entered a consolidation phase on Thursday, with bitcoin trading around $65,674, down approximately 0.62% since the start of the UTC session. BTC has remained confined to the same range for the past week as buyers and sellers continue to battle for control.

The current pause follows a significant July rebound, with bitcoin rising more than 13% from its July 1 low of $57,750. However, after failing to break decisively above the $66,000 resistance level earlier this week, the market has shifted toward a period of sideways trading instead of extending the rally immediately.

Global markets have provided limited direction. Futures linked to the Nasdaq 100 and S&P 500 are slightly lower by about 0.3%, the U.S. dollar index is largely unchanged, and gold and silver are giving back some gains after their recent safe-haven rally. Without a strong macro catalyst, crypto prices have remained relatively stable.

Derivatives market analysis

Crypto futures remain in a waiting mode:
The derivatives market is showing a lack of strong conviction, with 24-hour trading volume slipping about 1% to $147 billion and open interest remaining steady near $111 billion. The long-short ratio is close to evenly balanced, suggesting traders are not heavily positioned in either direction.

Bitcoin open interest falls while Ethereum rises:
Bitcoin futures open interest has eased to approximately 743,000 BTC after surpassing 760,000 BTC earlier in the week. The decline indicates that traders are trimming positions as the rally loses momentum. However, the move could be supportive for bitcoin because it appears to be driven by long position liquidations rather than a wave of new bearish bets.

Ethereum futures open interest has increased despite its recent price decline. Positive open interest-adjusted cumulative volume delta (CVD) data suggests buyers continue to execute aggressive market orders.

Altcoin activity remains mixed:
Momentum across altcoins is divided. ZEC, HBAR, LTC, AVAX, and SUI are showing positive CVD readings, reflecting stronger buying activity. In contrast, BTC, XLM, DOGE, and SHIB are recording negative CVD levels, indicating continued pressure from sellers.

Bitcoin volatility raises caution:
Bitcoin’s 30-day implied volatility index (BVIV) has moved higher for five consecutive days, pointing to increasing uncertainty among traders. Since the launch of spot bitcoin ETFs, BTC has generally maintained a negative correlation with BVIV, meaning rising volatility has often preceded downward price pressure. Ethereum’s volatility measure remains relatively unchanged.

Options market shows improving sentiment:
Options activity on Deribit and Paradigm showed increased demand for bitcoin’s $70,000 call option expiring Aug. 7. Some investors also bought longer-term puts as a hedge against possible declines. Ethereum options markets similarly showed stronger interest in upside positions.

Overall, fear in the market appears to be fading, with BTC and ETH put-call skews moving closer to neutral territory. Ethereum’s one-week skew briefly turned negative, indicating a temporary period where call options traded at a premium to puts.

Token market update

WLFI was Thursday’s strongest performer, climbing 12.18% to $0.063. The Trump family-associated token returned to a market capitalization near $2 billion, although it remains far below its record high.

MORPHO extended its recent rally, gaining almost 4% to $1.989 and continuing to rank among the better-performing AI-focused tokens in recent weeks.

Ethena (ENA) advanced 2% to $0.092, continuing its steady recovery and outperforming many DeFi-related assets despite remaining more than 90% below its September 2025 peak.

Lighter (LIT) dropped 2.96%, marking a third consecutive decline as traders continued realizing profits after the token’s sharp 200%-plus increase between May and early July.

CoinMarketCap’s altcoin season index remains at 51/100, with investors waiting for bitcoin to make a decisive move before determining the next major market trend.