Bitcoin Shows Recovery, but Crypto Markets Still Face Downward Pressure

Bitcoin Approaches $92K as Markets Recover, But Downtrend Persists

Bitcoin inched toward $92,000 this week as crypto markets gradually recovered from last week’s sharp sell-off, though resistance levels suggest the broader downtrend remains in place.

BTC reached $91,500, its highest since November 20, while Ether (ETH) maintained levels above $3,000 for three consecutive days. The CoinDesk 20 Index (CD20) rose 6.3% this week, on track for its largest one-week gain since October 5.

Despite the recovery, bitcoin faces a critical test. Breaking out of the downward channel in place since early October requires a clear move above $98,000 and ideally consolidation above $100,000. Failing to achieve this could form another lower high, reinforcing the bearish trend from October’s $126,000 peak.

Sentiment shows tentative improvement. The Fear and Greed Index rose to 20/100 from 10/100 last week, signaling “extreme fear” but a gradual shift toward optimism.

Altcoins remain largely stagnant as investors favor bitcoin’s relative stability. Volatility metrics support this cautious tone: Volmex’s 30-day implied volatility index (BVIV) continues to fall, reversing the mid-November spike, mirroring the pullback in Wall Street’s VIX. Deribit options data shows a similar trend—BTC and ETH short-dated puts remain pricier than calls, but the narrowing spreads suggest reduced demand for downside protection.

On-chain flows indicate ETH traders are focused on risk reversals and strangles, while BTC traders pursued put spreads. On OTC network Paradigm, activity centered on higher strike out-of-the-money ETH calls.

In the futures market, ZEC open interest (OI) fell 5%, leading declines among major tokens including BTC, ETH, BNB, and SUI. Funding rates for ZEC and SOL remain negative, indicating a short bias, while other tokens show marginally positive rates. CME BTC futures OI remains near multi-month lows, and ETH OI stands at around 2 million ETH, down from the late-October record of 2.66 million ETH.

Market activity slowed during the U.S. Thanksgiving holiday, with Thursday’s trading volume at $81 billion, below the $113–145 billion range seen earlier in the week, according to Coinalyze.

Some altcoins outperformed. Sky (SKY), formerly MKR, rose 8.5% after forming a W-shaped bottom between November 22–26. PUMP and SHIB gained over 5%, while ENA extended its 27% weekly rally with an additional 4.3% increase.

Meanwhile, ZEC dropped 7.1% over 24 hours, extending its 26% loss since November 21. TIA also fell sharply amid layoffs and declining on-chain activity, fueling negative social sentiment.

CoinMarketCap’s “altcoin season” indicator remains at 21/100, showing that investors continue to prefer bitcoin’s relative safety over riskier altcoins.