Bitcoin Nears $92K as Market Recovers, But Downtrend Remains
Bitcoin edged closer to $92,000 this week as crypto markets began to recover from last week’s sharp sell-off, though key resistance levels suggest the broader downtrend is still in effect.
BTC climbed to $91,500, its highest since November 20, while Ether (ETH) stayed above $3,000 for three consecutive days. The CoinDesk 20 Index (CD20) has risen 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 that started in early October requires a clear move above $98,000 and ideally consolidation above $100,000. Failure to do so could form another lower high, reinforcing the bearish trend from October’s $126,000 peak.
Market sentiment is slowly improving. The Fear and Greed Index increased to 20/100 from 10/100 last week, signaling “extreme fear” but a modest shift toward optimism.
Altcoins remain mostly flat 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 the mid-November spike, in line with the decline in Wall Street’s VIX. Deribit options data shows BTC and ETH short-dated puts still pricier than calls, though narrowing spreads point to reduced demand for downside protection.
On-chain flows highlight a similar pattern. ETH traders focused on risk reversals and strangles, while BTC traders chased put spreads. OTC activity on Paradigm centered on higher strike out-of-the-money ETH calls.
In the futures market, ZEC open interest (OI) fell 5%, leading declines across major tokens including BTC, ETH, BNB, and SUI. Funding rates for ZEC and SOL remain negative, reflecting a bearish short bias, while other tokens show slightly positive rates. On the CME, BTC futures OI remains near multi-month lows, and ETH OI stands at approximately 2 million ETH, down from a record 2.66 million in late October.
Market activity slowed during the U.S. Thanksgiving holiday. Thursday’s total trading volume was around $81 billion, below the $113–145 billion range seen earlier in the week, according to Coinalyze.
Some altcoins bucked the trend. Sky (SKY), formerly MKR, surged 8.5% after forming a W-shaped bottom from November 22–26. PUMP and SHIB each gained over 5%, while ENA extended its 27% weekly rally with an additional 4.3% rise.
On the downside, ZEC dropped 7.1% over 24 hours, adding to a 26% loss 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, signaling that investors continue to favor bitcoin’s relative stability over riskier altcoins.
