Bitcoin Retakes $90K in Rare Holiday Rally

The Bitcoin price has reclaimed the psychologically critical $90,000 level, and it has done so in a way that surprised even seasoned traders. After a tense November that saw BTC briefly plunge below $90K and wipe out most of its year-to-date gains, the leading digital asset has staged a sharp rebound just days before Thanksgiving.

What makes this move stand out is not only that Bitcoin retakes $90K in break from typical pre-Thanksgiving price action, but that it did so against a seasonal backdrop that has historically leaned bearish. In several recent years, the Wednesday before Thanksgiving has been a negative session for BTC, yet in 2025 the market flipped that script with a decisive push higher, reportedly breaking back above the $90,000 mark after nearly a week trading below it.

This unusual pre-holiday surge comes after a violent drawdown from October’s all-time high above $125,000, which erased more than a trillion dollars from Bitcoin’s market value and rattled investor confidence. Now, as the crypto market attempts to stabilize, traders are asking the same questions:

What changed? Why did Bitcoin retake $90K right when it usually struggles? And what does this move signal for BTC as it heads into the final stretch of the year?

In this in-depth analysis, we will unpack the price action, explore the macro and technical drivers behind the rally, and outline what both short-term traders and long-term holders should watch next.

What Happened When Bitcoin Retook $90,000?

After setting a record high above $126,000 in early October, Bitcoin (BTC) entered a steep correction. Rising macro uncertainty, shifting expectations for Federal Reserve rate cuts, and heavy leverage in the derivatives market combined to drag prices sharply lower. By mid-November, BTC had fallen below $90,000 for the first time in seven months, sparking headlines about a souring mood across risk assets. Then, just as markets were bracing for a traditional pre-Thanksgiving lull, BTC reversed course. On the Wednesday before the U.S. holiday, reports showed Bitcoin pushing back above $90,000, breaking nearly a week of sub-90K trading and defying its usual pattern of weakness into the holiday.

This sudden shift turned what many feared would be a “Thanksgiving crash” into a surprising pre-Thanksgiving rally, with BTC bulls reclaiming the narrative—at least for now.

A Break From Typical Pre-Thanksgiving Price Action

The Historical “Thanksgiving Effect” on Bitcoin

Although Bitcoin is a relatively young asset, patterns have emerged around major U.S. holidays, particularly Thanksgiving. In recent years, analysts have observed that the Wednesday before Thanksgiving tends to be a soft day for BTC, with several instances of price declines and increased volatility as traders lighten positions before the long weekend.

In fact, some historical analyses highlight that in six of the last seven pre-Thanksgiving Wednesdays, Bitcoin price has closed lower. Whether this is due to reduced liquidity, profit-taking, or simply coincidence is still debated, but the pattern has been notable enough for traders to factor it into their strategies.

Against this backdrop, the recent move where Bitcoin retakes $90K in break from typical pre-Thanksgiving price action becomes even more significant. Instead of selling off, BTC climbed, and in some reports even pushed toward the low $90K region during Thanksgiving week, signaling that seasonal behavior can shift when the broader cycle is strong enough.

Why This Year Is Different

Several factors make 2025’s pre-Thanksgiving period unique compared to prior years:

1. Macro Crosscurrents:
   Markets are caught between expectations of future Fed rate cuts and lingering concerns about higher-for-longer interest rates. Recent data and commentary have tilted sentiment slightly toward easing in 2026, improving risk appetite and supporting a rebound in crypto prices.

2. Post-Crash Positioning:
   After BTC’s drop from above $125,000 to near $90,000, many overleveraged long positions were flushed out. With weaker hands cleared and BTC derivatives positioning lighter, the market was more balanced and ready to react positively to any good news.

3. ETF and Institutional Flows:
   While spot ETF inflows have cooled compared to earlier in the year, they still represent a structural demand driver. Even modest net inflows around a thin-liquidity holiday period can spark outsized moves upward, especially when sentiment is shifting from panic to cautious optimism.

Put simply, the stage was set for a squeeze higher, and the calendar alone was not enough to hold BTC back.

Key Drivers Behind Bitcoin’s Return to $90K

Short Covering and Derivatives Dynamics

A powerful yet often underestimated driver of BTC price action is the derivatives market. During the mid-November sell-off, billions of dollars in leveraged positions were liquidated as prices cascaded lower, amplifying the move and heightening fear.

Once the liquidation wave passed and funding rates normalized, conditions were ripe for a counter-move. As Bitcoin retook $90K, short positions that had piled in below that level were forced to cover, adding fuel to the rally. This kind of short squeeze is typical when a key psychological barrier flips from resistance back into support.

Macro Sentiment and Fed Expectations

Crypto markets do not trade in a vacuum. Expectations around U.S. monetary policy, especially the path of interest rates, directly influence Bitcoin and other risk assets.

In late November, rising speculation that the Federal Reserve could pivot to rate cuts sooner than previously expected boosted appetite for growth stocks and cryptocurrencies alike. Renewed optimism about lower yields made the “digital gold” narrative more attractive, helping BTC recover from its sub-90K lows.

On-Chain Flows and Long-Term Holders

On-chain data and analyst commentary point to increased distribution from some long-term holders during the earlier crash, as high prices tempted certain cohorts to take profit.

However, even amid volatility, a large base of HODLers continues to sit on significant unrealized gains and has not capitulated. This blend of partial profit-taking on the way up and steady conviction among long-term addresses creates an environment where Bitcoin retakes $90K without triggering the kind of broad panic selling seen in prior cycles.

Correlation With Tech and AI Stocks

Another nuance of the current cycle is Bitcoin’s increasing correlation with high-growth technology and AI equities. When mega-cap tech names rebound, flows often spill over into BTC, especially through crossover funds and multi-asset portfolios.

As U.S. equities stabilized into the Thanksgiving week, BTC bulls found an additional tailwind, helping the crypto market rebound and reinforcing the idea that this is no longer just a niche digital experiment but a core part of the global risk asset complex.

Why the $90K Level Matters Technically

From a technical analysis standpoint, $90,000 is more than a round number. After October’s peak above $125,000, many analysts identified the 90K–95K region as a key support and then resistance band. When BTC lost that zone in mid-November, it signaled a deeper correction might be underway, with some forecasts eyeing potential targets as low as $75,000.

Now, with Bitcoin retaking $90K in break from typical pre-Thanksgiving price action, that zone is being re-tested from below. If BTC can hold above it, especially on higher time frames like the daily and weekly charts, it may.

For active traders, this pre-holiday surge is both an opportunity and a warning. The fact that BTC price can swing from mid-80Ks to above 90K within days underscores the extreme volatility of this market. Those trading on leverage face amplified risk, especially as order books grow thinner during holiday periods.

At the same time, Bitcoin retakes $90K offers a clear reference point. Above this level, bulls may feel emboldened to target prior resistance zones in the mid-90Ks and possibly the 100K threshold, while bears may look for signs of exhaustion to fade the move.

For Long-Term Investors

For long-term holders, the main takeaway is not the precise tick around $90,000 but the resilience of the broader Bitcoin bull market.

Even after a historic crash that erased over a trillion dollars in value and dragged BTC down nearly 30% from its all-time high, the crypto market has so far avoided a complete breakdown.

If anything, the fact that Bitcoin retakes $90K in break from typical pre-Thanksgiving price action may reinforce the view that volatility is part of the journey, but the long-term trend can remain intact as long as adoption, on-chain activity, and institutional participation continue to expand.

Major Risks Still Hanging Over Bitcoin

With the BTC price back around the psychologically important $90,000 mark, traders and investors can monitor several key areas:

1. Sustainability of the Move:
   Does Bitcoin price today stay above $90K through and after the Thanksgiving weekend, or does it quickly slip back into the high-80K zone once regular liquidity returns?

2. Spot ETF Flows:
   Renewed institutional inflows into spot Bitcoin ETFs would signal renewed confidence from large players and support the thesis of a durable recovery.

3. On-Chain Indicators:
   Metrics such as realized price, long-term holder supply, and exchange balances can help gauge whether this is driven more by speculative froth or by genuine accumulation from long-term BTC holders.

4. Macro Data Releases:
   Inflation reports, employment data, and Fed speeches will shape the broader risk environment. If these lean dovish, digital assets like Bitcoin often benefit; if they surprise hawkish, volatility may persist.

In the end, the fact that Bitcoin retakes $90K in break from typical pre-Thanksgiving price action suggests that sentiment is already turning from maximum fear toward cautious optimism. The next few weeks will reveal whether that optimism was justified.

Conclusion

Bitcoin’s surge back above $90,000 just before Thanksgiving is a striking moment in this cycle. It represents not only a recovery from a brutal mid-November crash but also a clear deviation from the usual pattern of pre-holiday weakness that traders had come to expect.

By reclaiming this critical level, Bitcoin price has signaled that the bull market may still have life left in it, even after a trillion-dollar drawdown and persistent macro headwinds. At the same time, the move underscores the importance of understanding seasonal patterns, derivatives positioning, macro drivers, and on-chain behavior when navigating crypto volatility.

For short-term traders, this is a reminder that big swings can occur when liquidity is thin and positioning is stretched. For long-term investors, it reinforces the idea that volatility is the cost of admission in a market that continues to redefine itself as both a store of value and a high-beta risk asset.

As always, any discussion of Bitcoin retakes $90K should come with a note of caution: this is not financial advice, and every investor should evaluate their own risk tolerance, time horizon, and strategy before acting.

FAQs

Q. Why is Bitcoin retaking $90K before Thanksgiving such a big deal?

It matters because it goes against Bitcoin’s recent seasonal pattern. In several past years, the Wednesday before Thanksgiving tended to be a weak session for BTC, with prices often dipping as traders reduced risk. This time, Bitcoin retakes $90K in break from typical pre-Thanksgiving price action, signaling that the underlying bull trend and post-crash positioning were strong enough to override the usual seasonal softness.

Q. Does reclaiming $90,000 mean the Bitcoin bull market is back on?

Reclaiming $90K is a positive sign, but it does not guarantee an immediate return to all-time highs. Bitcoin is still trading well below the peak above $125,000 set in early October, and macro risks remain. However, holding above this level reduces the odds of a deeper, sustained breakdown and supports the idea that the current move is a sharp correction within a larger bull cycle rather than the end of it.

Q. Could Bitcoin drop below $90K again after this rally?

Yes. The crypto market remains highly volatile, and several factors—such as tighter Fed policy, negative economic data, or renewed regulatory concerns—could push the Bitcoin price back below $90,000 in the short term. Some analysts have even warned that BTC could revisit the mid-80K or lower support zones if sentiment turns sharply risk-off again.

Q. What does this move mean for long-term Bitcoin holders?

For long-term holders, the main message is that Bitcoin can experience steep drawdowns even in a strong cycle, yet still recover key levels like 90K relatively quickly. The fact that Bitcoin retakes $90K after such a deep crash suggests that structural drivers—such as institutional adoption, spot ETFs, and growing recognition of BTC as a macro asset—remain intact. Long-term investors typically focus less on short-term volatility and more on whether these structural drivers are strengthening over time.

Q. How should traders approach Bitcoin around the $90K level?

Many traders treat $90,000 as an important reference zone. If Bitcoin price can hold above this level on strong volume and positive funding dynamics, short-term bulls may target resistance in the mid-90K area and eventually the 100K region. If BTC repeatedly fails to hold above 90K, it may signal that the market needs more time to consolidate, making caution and position sizing especially important. In all cases, using proper risk management and avoiding excessive leverage is critical in such a volatile environment.

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