Bitcoin Climbs Toward $92K as Market Recovers, But Bearish Pressure Persists
Bitcoin inched closer to $92,000 this week as crypto markets recovered from last week’s sharp sell-off, though key resistance levels suggest the broader downtrend remains intact.
BTC rose to $91,500, its highest since November 20, while Ether (ETH) held above $3,000 for three straight days. The CoinDesk 20 Index (CD20) is up 6.3% this week, on track for its largest one-week gain since October 5.
Despite the rebound, bitcoin faces a critical test. Breaking out of the downward channel established in early October requires a decisive move above $98,000, with consolidation above $100,000 needed to confirm a reversal. Failure to do so could form another lower high, reinforcing the bearish trend from October’s $126,000 peak.
Investor sentiment is gradually improving. The Fear and Greed Index rose to 20/100 from 10/100 last week, still signaling “extreme fear” but showing a shift toward optimism.
Altcoins remain largely unchanged as investors favor bitcoin’s relative stability. Volatility metrics support this cautious recovery: Volmex’s 30-day implied volatility index (BVIV) continues to drop, reversing mid-November spikes, in line with Wall Street’s VIX pullback. Deribit options data shows BTC and ETH short-dated puts remain pricier than calls, though narrowing spreads suggest lower demand for downside protection.
On-chain flows reflect similar trends. ETH traders focused on risk reversals and strangles, while BTC traders pursued put spreads. OTC activity on Paradigm centered on higher strike out-of-the-money ETH calls.
In futures markets, 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, signaling a bearish short bias, while other tokens show modestly positive rates. CME BTC futures OI remains near multi-month lows, and ETH OI stands at roughly 2 million ETH, down from a late-October record of 2.66 million ETH.
Market activity slowed during the U.S. Thanksgiving holiday. Thursday’s total trading volume was $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 each gained more than 5%, while ENA extended its 27% weekly rally with an additional 4.3% gain.
Meanwhile, ZEC dropped 7.1% over 24 hours, adding to a 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, suggesting investors continue to favor bitcoin’s relative stability over riskier altcoins.
