BTC Range Bound as Altcoins Take Volatility
The current price of BTC is being supported by long-term holders who accumulated coins during its drawdown from the all-time high to the bear market low. This has led to a relatively healthy uptrend, but some caution is still warranted as the price remains within a narrow range of $77,100 to $81,300.
The recent minor pullback from range highs indicates that many holders have a cost basis just below the current market price, making it difficult for the price to break out. The True Market Mean of $76,800 is currently aligned with the lower end of this range, which is a critical level that must be maintained to continue the mid-timeframe uptrend.
On the other hand, altcoins have been taking the volatility, with every one of the 29 largest liquid pairs rising between 1-8 September. Polkadot led the pack with a 43 percent gain, followed by Zcash at 42 percent and Kaspa at 28.8 percent.
The options market is also reacting to the upcoming macro catalysts, with open interest for the 18 September expiry growing 42 percent to 12,961 contracts. The price being paid for protection has risen, with implied volatility standing at 41.2 on the 18 September expiry against 39.0 on the 25 September quarterly.