Crypto Market Stabilizes as Bitcoin Trades Sideways Following July Rally

Bitcoin remains stuck in a consolidation range between $64,000 and $66,800 after a 13% rebound from July lows, with investors waiting for a stronger market signal. WLFI emerged as the top performer of the session, gaining 12%.

The crypto market continued trading sideways on Thursday, with bitcoin hovering around $65,674, down roughly 0.62% since midnight UTC. BTC has spent the past week moving within the same range as traders weigh whether the recent recovery can develop into a fresh rally.

The current price movement reflects a temporary pause following bitcoin’s strong comeback. The asset has climbed more than 13% from its July 1 low of $57,750, but its inability to break above the $66,000 resistance zone on Tuesday has shifted momentum toward consolidation rather than a sharp continuation higher.

Broader financial markets have provided limited support. Nasdaq 100 and S&P 500 futures are both slightly lower by about 0.3%, the U.S. dollar index remains largely flat, and gold and silver have pulled back after their recent safe-haven gains. With no major macro trigger emerging, crypto markets have lacked a clear directional catalyst.

Derivatives market overview

Traders remain cautious:
Crypto futures activity continues to show a balanced market, with 24-hour trading volume declining around 1% to $147 billion while total open interest remains near $111 billion. The long-short ratio is almost evenly matched, suggesting traders are waiting rather than making aggressive directional bets.

Bitcoin positions decline as Ethereum attracts demand:
Bitcoin futures open interest has dropped to approximately 743,000 BTC after reaching above 760,000 BTC earlier in the week. The decline indicates some traders are closing positions as momentum slows. However, the reduction may be viewed positively because it appears linked mainly to long liquidations instead of increased short selling.

Ethereum futures open interest has moved higher despite the asset’s overnight decline. Positive open interest-adjusted cumulative volume delta (CVD) indicates buyers are still actively entering positions through market orders.

Altcoin market remains divided:
Trading signals across altcoins are mixed. ZEC, HBAR, LTC, AVAX, and SUI are showing positive CVD figures, suggesting stronger buying activity. Meanwhile, BTC, XLM, DOGE, and SHIB are recording negative CVD levels, pointing to continued selling pressure.

Volatility indicators suggest caution:
Bitcoin’s 30-day implied volatility index (BVIV) has risen for five consecutive days, highlighting increasing uncertainty. Since spot bitcoin ETFs launched, BTC has generally shown a negative relationship with BVIV, meaning rising volatility has often preceded weaker price action. Ethereum’s volatility index remains stable.

Options traders show renewed confidence:
Activity on Deribit and Paradigm revealed strong demand for bitcoin’s $70,000 call option expiring Aug. 7. Some traders also bought longer-term put options for downside protection, while Ethereum options markets showed growing interest in bullish exposure.

Market fear continues to fade, with BTC and ETH put-call skews moving closer to neutral levels. Ethereum’s one-week skew briefly turned negative, reflecting a short-term shift where call options became more expensive than puts.

Token performance

WLFI was Thursday’s biggest gainer, rising 12.18% to $0.063. The Trump family-linked token recovered to a market value of around $2 billion, though it remains well below its previous peak.

MORPHO continued its upward trend, adding nearly 4% to reach $1.989 and maintaining its position as one of the stronger AI-related token performers over the past two weeks.

Ethena (ENA) increased 2% to $0.092, extending its recovery and outperforming many DeFi assets despite remaining more than 90% below its September 2025 high.

Lighter (LIT) declined 2.96%, extending losses for a third straight session as traders continued taking profits after its massive 200%-plus rally from May through early July.

CoinMarketCap’s altcoin season index remains unchanged at 51/100, with investors awaiting a decisive bitcoin breakout or breakdown to determine the market’s next major move.