Bitcoin Retakes $90K in Break From Typical Pre-Thanksgiving Price Action

A quiet pre-Thanksgiving session turned louder in U.S. afternoon hours, with bitcoin BTC$89,262.79 managing to regain the $90,000 level after nearly one week below that price.

Of late, the Wednesday prior to Turkey Day has been a weak one, with declines in six of the past seven years, including massive drops in both 2020 and 2021.

With today's advance, bitcoin has climbed about 12% since a panicky bottom near $80,000 early last Friday. Still, the world's largest crypto remains lower by 3% over the past week, 21% over the past month and 28% from its record high of $126,000.

The bullish action in bitcoin these past few days comes as obituaries for the sector flow in from the usual suspects, the latest being a trifecta of gloomy articles from the longtime crypto-skeptic Financial Times on Wednesday.

At press time, bitcoin was trading just above $90,000, up nearly 3% over the past 24 hours.

“Bitcoin volatility is rolling over since hitting the highest level since April this year as the market is trading on lower volumes during the week of Thanksgiving,” said Jasper De Maere, desk strategist at Wintermute. "Thin markets can soften sharp swings."

Options data shows many traders expect bitcoin to hold in a tight band, according to De Maere. Positioning leans toward selling call options and strangles around the $85,000 to $90,000 range, with only light downside protection. This means that traders are betting that bitcoin will stay put and are willing to take advantage of others who expect a big move.

“The market looks comfortable fading moves on both sides rather than positioning for a breakout,” he said. That stance sets the tone heading into the long weekend, when lighter volumes often limit major price shifts.