Bitcoin Price Recovers to $91,550 Amid Market Uncertainty

Bitcoin's price has bounced back above $90,000 amid a divided cryptocurrency community. Some view it as a relief rally before another downturn, while others see a continuing bull market.
Market analyst OxChain suggests that the recent price decline doesn't indicate a cycle top, noting the absence of typical peak characteristics like hype and speculation.
The decline in Bitcoin from October's mid-$120,000 was accompanied by a market value loss of nearly $1 trillion, primarily due to reduced demand rather than speculative activity.
A slowdown in stablecoin creation, decreased ETF inflows, softened funding conditions, and unwinding open interest have contributed to reduced buying activity.
Expectations of a potential interest rate cut in December have led many buyers to remain cautious, resulting in fragile liquidity and market depth.
Increased volatility in the derivatives market shows traders leaning towards protective strategies, with less interest in futures contracts even during relief rallies.
On-chain data reflects cautious investor sentiment, with older coins moving but long-held Bitcoin remaining largely unsold.
The adjusted spent output profit ratio (aSOPR) near 1 indicates no significant profit-taking or panic selling.
Selling activity is mainly from mid-term holders, and institutional investors have been inactive, contributing to muted market flow.
OxChain concludes that while the bullish narrative isn't gone, the current market setup is fragile, with drifting and testing of lower levels expected until a strong catalyst emerges.

Bitcoin is currently trading just above $91,550, showing a 4% recovery within 24 hours.