Bitcoin Rebounds Above $90K Ahead of Thanksgiving

Just as traders braced for the usual pre-Thanksgiving decline, bitcoin reversed course on Wednesday, reclaiming the $90,000 level after nearly a week below that threshold.

U.S. afternoon trading saw the quiet pre-holiday session pick up pace, with bitcoin climbing roughly 12% from a panicky low near $80,000 early last Friday. Despite the bounce, the world’s largest cryptocurrency is still down 3% over the past week, 21% over the past month, and 28% from its all-time high of $126,000.

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

The recent bullish move comes amid continued skepticism in the sector, highlighted by a trio of gloomy articles from the long-time crypto critic, the Financial Times, published Wednesday.

At press time, bitcoin was trading slightly above $90,000, up nearly 3% in the past 24 hours.

“Bitcoin volatility is rolling over after reaching the highest level since April, as the market trades on lower volumes during Thanksgiving week,” said Jasper De Maere, desk strategist at Wintermute. “Thin markets can soften sharp swings.”

Options data indicates that many traders expect bitcoin to remain in a narrow range, with positioning favoring selling call options and strangles between $85,000 and $90,000, and only limited downside protection. “The market looks comfortable fading moves on both sides rather than positioning for a breakout,” De Maere added.

As traders head into the long Thanksgiving weekend, lighter volumes may continue to limit major price swings, setting the tone for a measured end to the week.