Bitcoin Bounces Above $90K Ahead of Thanksgiving
Just as traders were bracing for the typical pre-Thanksgiving drop, bitcoin staged a midweek rebound on Wednesday, reclaiming the $90,000 mark after nearly a week below that level.
The quiet morning session in U.S. markets gained momentum in the afternoon, with bitcoin climbing roughly 12% from a low near $80,000 recorded early last Friday. Despite the recovery, bitcoin remains 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 weak for bitcoin, with declines in six of the past seven years, including steep drops in 2020 and 2021.
The midweek rally comes even as skepticism persists in the sector. The Financial Times, a long-time crypto critic, published three bearish articles Wednesday, underscoring ongoing concerns.
At press time, bitcoin was trading just above $90,000, up nearly 3% over the past 24 hours.
“Volatility is easing after reaching the highest levels since April, as trading volumes are lower during Thanksgiving week,” said Jasper De Maere, desk strategist at Wintermute. “Thin markets tend to soften sharp swings.”
Options data show that many traders expect bitcoin to remain in a narrow range, with a focus on selling call options and strangles between $85,000 and $90,000, and limited downside protection. “The market seems comfortable fading moves on both sides rather than betting on a breakout,” De Maere added.
As the long Thanksgiving weekend approaches, lighter trading volumes may continue to restrain major price moves, keeping the market relatively steady.
