Bitcoin News Today: Bitcoin's $90K rally: A cyclical turnaround or a prelude to further decline?

Bitcoin surged past $90,000 on Wednesday, offering a tentative reprieve for investors amid a turbulent November that erased its 2025 gains according to reports. The cryptocurrency's rebound followed a sharp correction from its October peak of $126,000, with the 29% decline sparking fears of a bear market. However, the recent 3% rise in 24 hours signals a modest recovery, though analysts caution that institutional disengagement and Federal Reserve policy uncertainty remain headwinds according to data.

The rally coincided with gains in other major cryptocurrencies. Ethereum climbed 3% to $3,022, Solana surged nearly 5% to $143, and XRP and Dogecoin posted 2% and 3% gains, respectively according to reports. Market sentiment, though still marked by "extreme fear" on the Crypto Fear & Greed Index, showed slight improvement as the index rose from 10 to 15 according to data. Liquidations in the last 24 hours totaled $300 million, with short positions accounting for $220 million, indicating a calmer trading environment compared to earlier volatility according to reports.

Technical indicators suggest Bitcoin is testing critical levels. Analyst Ali Martinez highlighted that the Puell Multiple, a metric tracking miner revenue, stands at 0.67-close to historical cycle bottoms seen when the indicator dips below 0.50 according to analysis. Meanwhile, Michaël van de Poppe emphasized that a break above $92,000 by month-end could validate the recent $80,000 low as a cycle bottom according to analysis. However, on-chain data reveals a bearish structure: Bitcoin remains below key moving averages and faces resistance between $94,000 and $100,000 according to data.

Institutional flows underscored mixed sentiment. Bitcoin spot ETFs recorded alternating inflows and outflows, with $128 million in inflows on Tuesday contrasting $151 million the prior day according to reports. Strategy Inc. (MSTR), a Bitcoin treasury company, noted its BTC holdings could cover convertible debt 5.9 times at $74,000, highlighting resilience even in a sharp downturn according to analysis.

The Thanksgiving holiday, which closed U.S. stock markets but left crypto trading open, added a layer of uncertainty. While traders priced in an 84% chance of a December Fed rate cut, economic data to justify the optimism remains scarce according to reports. Analysts like Nic Puckrin warned that any rally is "tenuous," hinging on the Fed's decision to dictate whether a "Santa rally" or "Santa dump" unfolds according to reports.

Long-term forecasts remain divergent. Some predict a 2025 high of $168,000, contingent on breaking the $96,000 resistance and avoiding a slip below $80,000 according to analysis. Conversely, a bearish scenario envisions a decline toward $53,489 in early 2026 if support at $70,000–$75,000 fails according to analysis.

As the market navigates this inflection point, Bitcoin's ability to sustain above $90,000 will be pivotal. With institutional hesitation and macroeconomic factors in play, the next few weeks could determine whether this bounce marks a cyclical bottom or a temporary respite in a broader downturn.