Bitcoin rose to $90,000, a departure from its typical pre-Thanksgiving price action

The quiet pre-Thanksgiving session in the US unexpectedly picked up steam in the afternoon, with Bitcoin (BTC) returning to the $90,000 mark after nearly a week of declines below that level. This move was noticeable against the backdrop of traditional price trends seen in the lead-up to the holiday.

Historical Context

In recent years, the Wednesday before Thanksgiving has often been a bad day for cryptocurrency investors. Six of the past seven years have seen a decline, including significant drops in 2020 and 2021. However, Bitcoin's current situation deviates from the usual scenario, sparking interest from analysts and traders.

Price Fluctuations

With today's gains, Bitcoin has risen approximately 12% from its panic-stricken lows near $80,000 early last week. However, the world's largest cryptocurrency has fallen 3% over the past week, 21% over the past month, and 28% since reaching its all-time high of $126,000. This highlights the market volatility and uncertainty facing investors.

Bullish Trend and Dire Forecasts

Bitcoin's bullish trend in recent days has coincided with a flood of negative predictions for the sector from those who usually make them. The final straw was a triple dose of gloomy articles from longtime crypto skeptic Financial Times on Wednesday. Despite this, at press time, Bitcoin was trading just above $90,000, up nearly 3% in the past 24 hours.

Trader Expectations

"Bitcoin volatility is declining after reaching its highest level since April this year, as the market trades on lower volumes in the week following Thanksgiving," noted Jasper De Maere, a strategist at Wintermute. He added that "a thin market could mitigate sharp fluctuations."

According to De Maere, options data shows that many traders expect Bitcoin to trade in a tight range. Positioning is skewed toward selling calls and strangles in the $85,000 to $90,000 range with little downside protection. This means traders are betting on Bitcoin to remain flat and are prepared to take advantage if others anticipate a significant move.

In Conclusion

Thus, Bitcoin's current rise to $90,000 before Thanksgiving stands out against historical trends and market volatility. Investors and traders are closely monitoring developments, anticipating price developments in the coming days.