Bitcoin has demonstrated promising signs of recovery following extended gains from weekend trading, currently hovering around $87,600. This marks an approximate 2.5% increase from its weekend low of $85,550, as reported by CoinGecko. Analysts suggest that this upward movement can be partially linked to a decline in seller momentum, which, while still in an oversold condition, shows early indications of exhaustion according to a Monday update from Glassnode.
The report indicates that stabilizing open interest, muted spot trading activity, and continuing outflows from exchange-traded funds suggest a transition from aggressive selling to a more orderly phase of de-risking. The notion of a more deliberate trading environment is further supported by an overnight increase in the spot cumulative volume delta, accompanied by a flattening Coinbase premium, hinting at growing spot buying and a reduction in seller activity.
The positive sentiment is echoed in the options market, where experts noted a shift from bearish to cautiously optimistic positions. Previously, there was a sustained push for put options—bets that the asset would decline—as Bitcoin approached the $80,000 mark. However, a notable rebound in the 25-delta skew, rising from -10.96 to -4.58, indicates that investors are less inclined to purchase puts for downside protection, hinting at waning bearish sentiment.
Call option volume has also seen significant growth across various strike prices, including $100,000, $116,000, $112,000, and $118,000. According to options analytics firm Laevitas, the last 24 hours have witnessed multiple Long Call Condor block trades, signaling demand for positive exposure as investors look ahead to late 2025. This strategy involves buying four call options with the same expiration date and is typically utilized when an investor anticipates that an asset’s price will remain within a specific range.
For Bitcoin to sustain its upward trajectory, it must first reclaim the $87,000 to $88,000 range, as noted by Ryan Yoon, a senior analyst at Seoul-based Tiger Research. He cautioned that if the cryptocurrency fails to hold above this level, it might simply be experiencing a relief rally with limited upside potential for bullish investors who are still nursing losses.
Amid these fluctuations, larger players in the market are reportedly maintaining a patient bullish stance. Matt Hougan, Chief Investment Officer of Bitwise, shared insights via social media following a conversation with a large advisory firm, characterizing the sentiment among institutional investors as one of growing conviction.
Looking ahead, the market’s stability is likely to be tested by forthcoming macroeconomic data releases. Notably, the Federal Reserve’s interest rate decision scheduled for December is anticipated to be a significant catalyst for determining Bitcoin’s future direction.
