Bitcoin Recovery From Worst of Selloff Holds, Buoying Traders

Market Overview - The selling pressure on Bitcoin appears to be easing, raising hopes that the recent decline may be nearing its end [1] - Bitcoin experienced a drop of up to 2.4%, reaching $86,666, but has since recovered to around $87,410 [2] - The overall digital-asset market has lost over $1 trillion in value due to recent slumps, with Bitcoin on track for its worst month since 2022 [2][3] Investor Sentiment - The mood among traders remains cautious, reflecting the fragile state of the market [3] - Bitcoin options market shows a significant decrease in the cost of downside protection, indicating reduced stress among investors [4] - The 14-day relative strength index for Bitcoin is at 32, suggesting it may be oversold [5] Trading Metrics - Implied volatility on Bitcoin options has returned to levels seen in April, indicating expectations of future price movements [5] - Traders are positioning for a potential breakout, with a shift in options skew showing reduced bets on further price drops [6] - Global crypto exchange-traded products have recorded over $6 billion in outflows in November, marking the largest monthly withdrawal since 2018 [6]