BTC Reclaims $90K, Breaking from Typical Pre-Holiday Price Patterns

Bitcoin Reclaims $90K Ahead of Thanksgiving After Midweek Reversal

Just as traders anticipated the typical pre-Thanksgiving dip, bitcoin reversed course on Wednesday, climbing back above $90,000 after nearly a week below that level.

The quiet morning session in U.S. markets picked up in the afternoon, with bitcoin rising roughly 12% from a recent low near $80,000 recorded early last Friday. Despite the rebound, the cryptocurrency remains down 3% over the past week, 21% over the past month, and 28% from its record high of $126,000.

Historically, the Wednesday before Thanksgiving has been a weak period for bitcoin, with declines in six of the past seven years, including notable drops in 2020 and 2021.

The recent price gain coincides with renewed skepticism in the sector. On Wednesday, the Financial Times — a long-time crypto critic — ran three bearish articles highlighting ongoing concerns in the market.

At press time, bitcoin was trading just above $90,000, up nearly 3% over 24 hours.

“Volatility is rolling over after hitting the highest levels since April, as trading volumes remain lower during Thanksgiving week,” said Jasper De Maere, desk strategist at Wintermute. “Thin markets tend to soften sharp swings.”

Options activity suggests traders expect bitcoin to stay in a narrow range, with a tilt toward selling call options and strangles between $85,000 and $90,000 and limited downside protection. “The market appears comfortable fading moves on both sides rather than positioning for a breakout,” De Maere added.

Heading into the long weekend, lighter volumes may continue to limit significant price swings, setting a cautious tone for the market

About The Author

ctleditor

See author's posts