Bitcoin Recovers Modestly, but Bearish Sentiment Persists in Crypto Markets

Bitcoin Approaches $92K Amid Recovery, But Bearish Trend Persists

Bitcoin inched toward $92,000 this week as crypto markets gradually rebounded from last week’s heavy sell-off, though resistance levels indicate the broader downtrend remains intact.

BTC reached $91,500, its highest since November 20, while Ether (ETH) stayed above $3,000 for three consecutive days. The CoinDesk 20 Index (CD20) gained 6.3% this week, on track for its largest weekly increase since October 5.

Despite these gains, bitcoin faces a key test. A decisive breakout above $98,000, with consolidation above $100,000, is required to reverse the downward channel established in early October. Failure to breach these levels could form another lower high, reinforcing the bearish trend from October’s $126,000 peak.

Sentiment is showing early signs of improvement. The Fear and Greed Index rose to 20/100 from 10/100 last week, reflecting “extreme fear” but a gradual shift toward optimism.

Altcoins remained largely flat as investors favored bitcoin’s relative stability. Volatility metrics support this cautious recovery: Volmex’s 30-day implied volatility index (BVIV) has declined, reversing mid-November spikes, in line with Wall Street’s VIX pullback. Deribit options data shows BTC and ETH short-dated puts remain pricier than calls, though narrowing spreads suggest reduced demand for downside protection.

On-chain flows also highlight cautious trading. ETH traders favored risk reversals and strangles, while BTC traders focused on put spreads. OTC activity on Paradigm concentrated on higher strike out-of-the-money ETH calls.

In futures markets, ZEC open interest (OI) fell 5%, leading declines among major tokens including BTC, ETH, BNB, and SUI. Funding rates for ZEC and SOL remain negative, signaling bearish short positions, while other tokens saw slightly positive rates. CME BTC futures OI remains near multi-month lows, and ETH OI hovers around 2 million ETH, down from the late-October record of 2.66 million.

Trading activity slowed during the U.S. Thanksgiving holiday. Thursday’s total volume was around $81 billion, below the $113–145 billion range seen earlier in the week, according to Coinalyze.

Some altcoins bucked the broader trend. Sky (SKY), formerly MKR, surged 8.5% after forming a W-shaped bottom between November 22–26. PUMP and SHIB gained more than 5%, while ENA added 4.3% to its 27% weekly rally.

Meanwhile, ZEC dropped 7.1% over 24 hours, extending a 26% loss since November 21. TIA also fell sharply amid layoffs and declining on-chain activity, fueling negative sentiment on social media.

CoinMarketCap’s “altcoin season” indicator remains at 21/100, showing that investors continue to favor bitcoin’s relative safety over riskier altcoins.