Bitcoin Shows Modest Rally Post-Thanksgiving Amid Market Volatility

Bitcoin's price has shown a modest rally post-Thanksgiving, currently trading around $91,000. Analysts suggest that the short-term trend remains bullish, but immediate resistance levels are critical. Bitcoin needs to break through resistance between $92,000 and $95,000 to maintain upward momentum.

Spot trading volume and overall trading activity must also recover for Bitcoin to reclaim the six-figure mark. According to Swissblock, a private wealth manager, the price dip below the yearly open of $93,300 marked a significant shift in trend.

For Bitcoin's bullish case to hold, it must defend the support zone between $83,000 and $85,000, where strong demand is required to form a bottom. The report indicates that if Bitcoin can reclaim the $94,000 to $95,000 range, the trend could flip positively.

Data from Glassnode's cost basis distribution heatmap shows that significant resistance lies at $93,000 to $96,000, where approximately 500,000 Bitcoin were acquired by investors. Beyond that, the next major barrier is between $100,000 and $108,000, which is expected to face some resistance from recent buyers.

Bitcoin bulls are targeting the $97,000 to $98,000 range as a confirmation of recovery, with aspirations for a breakthrough to the $100,000 mark, supported by promising futures market signals. However, Bitcoin's on-chain transfer volume has decreased by 20% over the last week, now standing at $87 billion.

The daily spot trading volume is approximately $12.8 billion, considerably lower than the cyclical peaks observed during this bull market. The latest price increase above $91,000 did not coincide with a rise in spot volume, indicating reduced investor engagement.

This divergence reflects a lack of speculative intensity needed to push prices higher. Previous market rallies have shown that increases in spot volume typically precede price surges. Currently, Bitcoin's taker cumulative volume delta is edging back to neutral from negative territory, which indicates potential for a buyer-dominant market.

If this trend continues, Bitcoin could experience a sustained rally similar to the 32% increase from May to July when the price reached around $123,000. It's crucial for investors to remain cautious, as every investment and trading move involves risk, and thorough research is recommended before making financial decisions.