Today in Crypto: Altcoins Lag Behind While Bitcoin Faces Key Support and Resistance

Crypto Market Update: Bitcoin Struggles as Altcoins Lag Amid Extreme Fear

Major cryptocurrencies—including Bitcoin (BTC $92,686.72), Ether (ETH $3,084.29), XRP ($2.2571), and Solana (SOL $143.04)—consolidated over the past 24 hours after a volatile week that pushed prices to multi-month lows.

The market remains in “extreme fear,” with the Fear and Greed Index at 12/100. Historically, prolonged readings below 20/100 often precede a rebound, though risk remains high.

Altcoins continue to struggle due to thin liquidity and weak demand for speculative assets. The CoinDesk Memecoin Index (CDMEME) has fallen 30% in the past month, underperforming the CoinDesk 5 (CD5), which lost 23%.

Bitcoin is at a key test: a rejection near $95,000 could create a fourth lower high, confirming a downtrend. A recovery above $90,000 could restore market confidence, while a return to last week’s lows around $81,000 may trigger panic selling, with altcoins most vulnerable due to liquidity constraints.

Derivatives and Volatility

BVIV Volatility: Volmex’s 30-day options-based implied volatility index bounced to nearly 60%, reversing an earlier drop to 57.55%, reflecting renewed downside pressure on spot BTC.
Options positioning: Traders are increasing demand for BTC puts on Deribit while reducing call overwriting. The $80,000 BTC put now has over $2 billion in open interest. BTC and ETH call-put skews remain defensive or negative.
Block flows: Recent activity favors strategies that benefit from wide spot price ranges, such as BTC call condors. Put calendar spreads dominated the last 24 hours.
Futures: XRP, DOGE, and HYPE saw rising open interest, while BCH positions fell 5%.

Altcoin Market Overview

By Oliver Knight

Altcoins lagged behind bitcoin over the past 24 hours due to persistent liquidity issues. Market depth remains low for tokens like TON ($1.6367) and DOT ($2.3597)—small trades can move prices by 2% or more. Smaller altcoins are even more vulnerable, amplifying volatility during liquidations or stop-loss triggers.

CoinMarketCap’s Altcoin Season indicator dropped to 23/100 from last week’s 30/100, highlighting a preference for bitcoin or stablecoins over riskier altcoin holdings.

Technically, crypto markets are in a neutral zone, showing neither oversold nor overbought conditions. The near-term trajectory depends on bitcoin reclaiming the $90,000 range. A drop to $81,000 could spark another wave of selling, disproportionately affecting altcoins due to thin liquidity.