Bitcoin Rebounds Toward $92K Amid Market Recovery, but Downtrend Persists

Bitcoin crept back toward $92,000 as crypto markets slowly recovered from last week’s steep sell-off, though resistance levels suggest the broader downtrend remains intact.

BTC rose to $91,500, its highest level since November 20, while Ether (ETH) held above $3,000 for three consecutive days. The CoinDesk 20 Index (CD20) has gained 6.3% so far this week, on track for its largest one-week increase since October 5.

Despite these gains, bitcoin faces a critical test. A decisive breakout above $98,000 and sustained consolidation above $100,000 is needed to confirm a reversal of the downward channel that has been in place since early October. Failure to breach these levels would likely form another lower high, reinforcing the bearish trend from October’s $126,000 record.

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

Altcoins remain largely flat as investors favor the relative stability of bitcoin. Volatility metrics support this cautious optimism: Volmex’s 30-day implied volatility index (BVIV) continues to decline, reversing the mid-November spike, while Wall Street’s VIX index also shows a pullback. Deribit options data echoes the trend—though BTC and ETH short-dated puts remain pricier than calls, the spreads have narrowed, pointing to reduced demand for downside protection.

On-chain flows highlight a similar pattern. ETH traders have favored risk reversals and strangles, while BTC traders chased put spreads. OTC activity on Paradigm has focused 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 bearish short bias, while other tokens see slightly positive rates. On the CME, BTC futures OI remains near multi-month lows, and ETH OI hovers around 2 million ETH, down from the record 2.66 million in late October.

Market activity has slowed due to the U.S. Thanksgiving holiday. Thursday’s total trading volume was around $81 billion, significantly lower than the $113–145 billion daily range from Monday to Wednesday, according to Coinalyze.

Some altcoins bucked the broader trend. Sky (SKY), formerly MKR, surged 8.5% after forming a clear W-shaped bottom between November 22 and 26. PUMP and SHIB each gained more than 5%, while ENA extended its 27% weekly rally with a 4.3% increase.

On the downside, ZEC dropped 7.1% over 24 hours, adding to a 26% decline since November 21. TIA also fell sharply following layoffs and declining on-chain activity, which fueled negative sentiment on social media.

CoinMarketCap’s “altcoin season” indicator remains at 21/100, showing that investors still favor bitcoin’s relative safety over the riskier altcoin market.