Bitcoin has clawed its way back above the $90,000 mark just ahead of Thanksgiving, easing some of the anxiety that had been building across the crypto market over the past two weeks.
On Wednesday afternoon, the leading cryptocurrency briefly touched about $90,334 before pulling back slightly. Most recently, Bitcoin was changing hands near $90,035, according to market data, representing a gain of more than 3% over the previous 24 hours.
This rebound comes after a sharp downturn in November. Late last week, Bitcoin slid to roughly $81,000 per coin, its lowest level in about seven months. That drop effectively wiped out the coin’s gains for 2025 and fueled talk that a new bear phase might be underway.
The context makes the recovery more striking. As recently as October, Bitcoin notched a new all‑time high around $126,080 per coin. Even after the latest bounce, prices remain roughly 29% below that peak, underscoring how brutal the recent correction has been for traders who bought near the top.
From euphoria to anxiety—and back again
The rapid shift from record highs to a steep pullback shook confidence among retail and professional investors alike. The November slide coincided with a broader risk‑off mood in global markets, and Bitcoin moved in lockstep with other digital assets, dragging the entire crypto complex lower.
Some market watchers interpreted the move below $85,000—and especially the brief test near $81,000—as a possible confirmation that the post‑halving rally had run out of steam. Liquidations spiked on leveraged derivatives platforms, and funding rates that had been stretched to bullish extremes quickly reset.
Yet the swift reclaim of $90,000 complicates the simple “new bear market” narrative. Short sellers who piled in near the lows are now under pressure, and on‑chain data indicates that long‑term holders have largely remained unmoved, continuing to sit on their coins despite elevated volatility.
Ethereum and XRP join the rebound
Bitcoin was not the only large‑cap cryptocurrency to stage a comeback.
Ethereum, the second‑largest digital asset by market capitalization, bounced back toward the $3,000 region, trading around $3,017 to $3,200 over the same 24‑hour period. That move helped stabilize sentiment in the broader smart‑contract and DeFi ecosystem, which tends to track ETH’s direction closely.
XRP also participated in the recovery, trading near $2.20 after being under heavy pressure earlier in the month. Although XRP remains far below its cycle highs, the recent bid suggests that some investors are selectively rotating back into high‑liquidity altcoins as Bitcoin steadies.
The synchronized rebound in BTC, ETH, and XRP is important from a market‑structure standpoint. When only Bitcoin rallies, it can signal a defensive move into the most established asset. When multiple large‑cap coins bounce together, it often points to a broader shift back toward risk appetite within crypto.
What’s driving the move back above $90K?
Analysts who have tracked the recent swings point to a mix of technical, macroeconomic, and sentiment‑driven factors:
– Technical support held: The zone between $80,000 and $82,000 had been flagged by many traders as a key support area built from previous consolidation. Once price respected that region and failed to break lower, dip buyers became more confident stepping back in.
– Oversold conditions: Short‑term momentum indicators flashed oversold readings after the multi‑week decline, suggesting the sell‑off had stretched too far too quickly. That often sets the stage for a relief rally, even if the broader trend remains uncertain.
– Positioning reset: Leveraged long positions had been heavily crowded near the October highs. Liquidations during the November drop flushed out many of those trades, leaving a cleaner positioning backdrop. With fewer overextended longs in the market, it takes less new demand to push prices higher.
– Macro backdrop: While interest‑rate expectations and inflation data remain front of mind for equities and bonds, Bitcoin’s reaction has been mixed rather than uniformly negative. Some traders see the latest dip and rebound as routine within a larger macro narrative where digital assets continue to be treated as a speculative, but increasingly mainstream, risk asset.
Has the bear market really started?
The debate over whether Bitcoin has entered a new bear market is far from settled.
On one hand, a drawdown of roughly 35% from the all‑time high to the recent $81,000 low is historically normal within broader bull cycles. Previous uptrends have seen multiple corrections of 30–40% before eventually pushing to new highs. From this perspective, November’s pain might be remembered as a mid‑cycle reset rather than the beginning of a prolonged downturn.
On the other hand, the psychological damage of seeing all year‑to‑date gains erased was significant. Many newer market participants had not experienced deep pullbacks and were quick to exit positions. If follow‑through buying above $90,000 fails to materialize, the market could slip back into a grinding, sideways‑to‑down pattern typical of early bear phases.
For now, the recovery into the Thanksgiving holiday tilts sentiment cautiously back toward the bullish camp, but traders remain acutely aware that one strong daily candle does not guarantee a sustained trend reversal.
Institutional appetite: waning or simply rotating?
Recent commentary from analysts has highlighted signs of cooling institutional enthusiasm after the frenetic inflows that accompanied Bitcoin’s push to $126,000. Flows into major trading products and structured vehicles have moderated, and some funds appear to be rebalancing away from crypto after a strong run earlier in the year.
However, a slowdown in net inflows does not necessarily mean institutions are abandoning the asset class. Instead, it may reflect a natural consolidation period as larger players reassess risk, lock in profits, and wait for clearer macro signals before deploying additional capital.
There are also indications that some institutional money is rotating within the crypto space—trimming Bitcoin exposure at the margins while selectively adding to Ether and other high‑conviction names. The recent synchronized bounce across large caps supports the idea that this is a portfolio‑management phase rather than a wholesale exit.
Thanksgiving timing and market psychology
The calendar adds an interesting layer to the latest move. Major U.S. holidays, including Thanksgiving, often coincide with thinner liquidity as traders step away from desks. In such environments, relatively modest buy or sell orders can push prices more sharply than usual.
Historically, Bitcoin has occasionally staged notable moves around holiday periods, amplified by lower order‑book depth and retail activity. The push back above $90,000 in the days leading up to Thanksgiving may partially reflect these seasonal liquidity quirks, with any surprise macro headlines or large orders capable of driving outsized intraday volatility.
Traders will be watching to see whether the price can hold the $90,000 area once full trading volumes return.
Key levels to watch from here
For market participants trying to navigate the next phase, several price zones stand out:
– Support near $81,000–$82,000: The recent low now represents a critical line in the sand. A decisive break below would strengthen the argument for a deeper bearish phase.
– Immediate support at $88,000–$90,000: If Bitcoin can convert this area from resistance into support, it would reinforce the case that the worst of the correction is over.
– Resistance around $100,000: A return to six‑figure prices would likely trigger renewed media attention and could pull sidelined capital back into the market.
– Major resistance near $120,000–$126,000: This zone encompasses the old all‑time high region. Bulls will ultimately need to reclaim and hold above it to confirm that the larger uptrend is intact.
Ethereum and XRP have similar technical landscapes, with important support levels formed during the recent pullback and overhead resistance zones that mark previous local highs. Sustained strength in Bitcoin typically benefits these assets, but they also face idiosyncratic catalysts tied to network upgrades, regulatory developments, and ecosystem growth.
What this means for different types of investors
The recent volatility carries different implications depending on an investor’s time horizon and risk profile:
– Long‑term holders (multi‑year view): For those who treat Bitcoin and major altcoins as long‑duration assets, the bounce above $90,000 is a reminder that sharp drawdowns are part of the landscape. Historically, patient investors who avoided reacting to mid‑cycle corrections have fared better than those attempting to time every swing.
– Active traders: Shorter‑term participants are likely to focus on the $90,000 level as a pivot point. Breaks above and below this zone, combined with volume and derivatives data, will help them assess whether current price action is simply a relief rally or the start of a fresh leg higher.
– New entrants: For people considering their first allocation, the recent swings illustrate why position sizing, diversification, and clear risk limits are essential. Entering a highly volatile market after a big move—up or down—without a plan can lead to emotional decision‑making.
Risk factors that could derail the rebound
Despite the relief rally, several risks still hang over the market:
– Macro shocks: Unexpected changes in interest‑rate expectations, inflation surprises, or sharp equity market sell‑offs can spill over into crypto and pressure prices again.
– Regulatory headlines: Adverse regulatory developments in key jurisdictions have a history of triggering swift repricings, particularly in altcoins.
– Leverage rebuilding: If excessive leverage quickly returns to derivatives markets as traders chase the bounce, another round of forced liquidations could follow on the next downturn.
Monitoring these factors will be crucial in assessing whether the move above $90,000 is sustainable or merely another volatile chapter in an ongoing consolidation phase.
Outlook: cautious optimism into year‑end
With Bitcoin back near $90,000, Ethereum and XRP off their recent lows, and broader sentiment stabilizing, the immediate panic that defined early November has faded. Yet the market remains in a delicate equilibrium: one decisive move in either direction could set the tone for the remainder of the year.
If buyers can defend current levels and gradually push prices higher on rising volume, the narrative of a healthy mid‑cycle correction gaining resolution will strengthen. Conversely, a sharp rejection from the $90,000–$95,000 band followed by a retest of $81,000 would revive fears that a deeper bear trend is only just beginning.
For now, Bitcoin’s reclaiming of $90,000 ahead of Thanksgiving stands as a symbolic victory for the bulls—proof that, even after a punishing two‑week slide and a 29% drawdown from its record high, the world’s largest cryptocurrency is not ready to concede the cycle just yet.