Bitcoin pushed above the 90,000-dollar mark on Wednesday afternoon during U.S. trading hours, snapping nearly a week of trading below that level. The move comes during what is normally a quiet and sometimes weak pre-Thanksgiving session. Historically, the Wednesday before the holiday has often been negative for BTC, with declines in six of the last seven years. This time, however, the tone shifted higher. After sliding to a panic low near 80,000 dollars last Friday, bitcoin has now rebounded roughly 12 percent. Even so, the broader picture remains mixed: BTC is still down 3 percent over the past week, 21 percent over the past month and 28 percent from its record high of 126,000 dollars. At the time of publication, bitcoin was trading a little above 90,000 dollars, gaining nearly 3 percent over the past 24 hours. Part of the recent strength may come from sentiment swinging too far into fear. As bitcoin reclaimed the 90,000-dollar level, traditional media outlets published a wave of negative headlines about crypto. For many long-term observers, that kind of timing often marks the end of a sentiment washout rather than the start of a deeper decline.
Investor Takeaway
Bitcoin’s rebound above $90K suggests the worst of the panic selling may have passed, but volatility usually remains elevated through the long holiday weekend.
Why Markets Are Calming Down Into the Holiday
According to Wintermute strategist Jasper De Maere, bitcoin’s volatility is easing after hitting its highest levels since April. With trading volumes thinning ahead of Thanksgiving, price moves tend to be more muted unless a major catalyst hits. Options data also shows that many traders expect bitcoin to stay in a tight range. De Maere said positioning is leaning toward selling call options and neutral strategies between 85,000 and 90,000 dollars. This usually means traders expect the market to stay relatively still and are willing to bet against large swings. In simple terms, the market looks comfortable trading sideways for now. Moves up or down are being met with selling or fading, which often keeps the price boxed in during quieter periods.
Why Analysts Think the Downturn May Be Nearing Exhaustion
While the short-term picture remains uncertain, several indicators suggest the recent sell-off may be close to running its course. Vetle Lunde, Head of Research at K33, pointed to bitcoin’s unusually weak performance compared to the Nasdaq. BTC has underperformed the index in 70 percent of sessions over the past month, something that has only happened a few times since 2020. Lunde said bitcoin is now about 30 percent weaker relative to the Nasdaq than it was in early October. He noted that past periods of similar underperformance typically came from very specific crypto-related shocks — such as Mt. Gox liquidations, government-driven BTC sales or major fund outflows. None of those specific triggers are present today. Instead, this downturn has been driven mostly by broad market fear and leverage unwinding. Lunde argues that this disconnect between bitcoin’s fundamentals and its recent underperformance could be creating a long-term opportunity for patient investors.
Investor Takeaway
Analysts say bitcoin’s sharp drop relative to tech stocks may be an overreaction. Historically, this kind of mismatch often precedes strong long-term recoveries.
Panic Signals Show Heavy Selling May Already Be Behind Us
K33 also highlighted several data points suggesting the sell-off is nearing saturation. During bitcoin’s slide to an intraday low of 80,500 dollars on November 21, spot trading volume surged to 14.3 billion dollars — one of the highest levels of the year. Such spikes often appear near major turning points, as both panic sellers and aggressive buyers flood the market. Other signs include:
- •High spot trading volumes near recent lows, reflecting strong buy-side interest.
- •A rise in CME front-month futures premiums during the dip, something usually seen near bottoming patterns.
- •A drop in futures open interest as overheated long positions unwind.
- •Large outflows from bitcoin ETPs that match previous panic periods.
Over the past 30 trading days, exchange-traded products have seen more than 62,000 BTC in net outflows — levels not observed since mid-March. Lunde called the surge in redemptions “elevated panic,” noting that such moves often occur when sentiment overshoots reality. K33 reduced risk earlier in the downturn but re-entered partially as bitcoin fell into the low 80,000-dollar zone, expecting that a longer-term recovery may follow once the market stabilizes.
What Comes Next?
With Thanksgiving ahead, volumes will likely remain thin until markets return to full activity early next week. Historically, this period can limit large price swings, though unexpected news always has the potential to amplify moves when liquidity is low. BTC has managed to reclaim an important psychological level at 90,000 dollars. If the price holds above that mark through the weekend, analysts expect the market to start repairing sentiment as December begins. For now, bitcoin’s recent rebound hints that sellers may be losing momentum — and traders are watching whether the recovery gains traction once holiday conditions fade.