Selling pressure on Bitcoin is starting to show signs of easing after weeks of severe losses that wiped out over $1 trillion in the digital asset’s market value. While the token is still on track for its worst month since 2022, a modest recovery to around $87,500 has sparked some optimism in a market that remains fragile.
Options market data showed bearish pressure, with short-term put option premiums falling sharply from recent highs. Bitcoin’s 14-day RSI is also nearing the oversold zone, while implied volatility has returned to April levels, suggesting traders are starting to assess the chances of the next big move in either direction.
Large outflows from crypto exchange-traded products hit over $6 billion in November, but US ETF investor holdings remained relatively stable with withdrawals of just around 3% of assets. The report also showed that short-selling interest in BlackRock’s Bitcoin ETF has waned, signaling a more neutral stance among large investors.
Analysts see the $80,000 level as key support and the $90,000 to $95,000 zone as key resistance for a stronger recovery. US monetary policy uncertainty remains a key driver, with investors now expecting an 80% probability of a Fed rate cut in December despite Fed officials remaining divided.
At the same time, macro risks are broader, including a weakening labor market and high AI capital spending. These factors are weighing on risk appetite.
