Bitcoin breaks through $90,000: Improved risk sentiment drives a rebound, but institutional options indicate that prices may be trapped in a range-bound fluctuation.

Source: PortaldoBitcoin Original Title: Understand the forces that led Bitcoin to surpass $90,000 Original Link: A surge in buying pressure for Bitcoin has caused the cryptocurrency to surpass $90,000 for the first time in almost a week, reaching a peak of $91,800 this Thursday (27).

The advance, however, was not driven by a specific crypto catalyst, but rather by an improvement in risk sentiment, according to analysis from trading experts.

Analysts observe that Bitcoin is likely to remain trapped in a range, highlighting that distribution flows linked to ETFs may prevent rises above $95,000. On the other hand, the area between $80,000 and $82,000 remains a key support zone following the recent sell-off.

In any case, the movement that started after the intraday low of $86,400 has sustained itself without major corrections. Bitcoin has risen 4.5% in the last 24 hours and is currently trading near $90,922.

The Bitcoin price reversal after weeks of consistent decline caught sellers by surprise, resulting in $241 million in liquidations of short positions in the last 24 hours, which were betting on the asset's decline — more than three times the volume of liquidations of long positions.

The S&P 500 index confirmed its fourth consecutive daily bullish candle on Wednesday, in line with Bitcoin's movement as it reclaimed the $90,000 level.

The advance occurs as markets reprice the likelihood of a rate cut in December by the U.S. Federal Reserve. There is now an 85% chance that the Fed will reduce rates by a quarter point next month.

Risks to be observed

Despite the recent communication from the Central Bank leaning slightly towards easing — with four officials signaling support for cuts — two remain neutral and six are still opposed.

Bitcoin, and by extension the entire crypto market, has become a mirror of the risk appetite of traditional markets, with macroeconomic factors playing a crucial role in shaping sentiment.

Other risks that could rekindle a bearish scenario and trigger a wave of selling include possible changes in market index compositions.

In the options markets, institutional flows of $2 billion were observed this week, with long call condor trades suggesting that Bitcoin is likely to remain within a limited range.

The long call condor strategy is a defined risk and limited profit operation, constructed by purchasing four ( calls ) with the same expiration date, but with different strike prices.

The maximum profit for the investor is realized if the asset price remains between the two intermediate strike prices at expiration, while the maximum losses occur if the price moves outside this range.