A strong November is in the cards for Bitcoin (BTC) as several indicators are beginning to signal strong gains. Dire conditions like low funding rates implying steady growth and the soaring Global Liquidity Index converging on a breakout are bullish enough.
Low Funding Rate, a Sign of More Sustainable Growth
Once again, Bitcoin has scaled to the $69,000 mark. However, there’s a notable difference in the funding rates compared to April 2024.
In April, when BTC hit this level, the funding rate was +0.05, meaning that traders were excited and leveraged on this asset. But in November, even at the same price, the funding rate is actually much lower at around 0.01 – 0.02. That is a more cautious, balanced market with less aggressive leverage.
This is bullish because it indicates that at that same BTC price, there is nonetheless room for more upside without the reckless leverage that tends to cause wild swings.
In this scenario, Bitcoin’s price could look at more sustainable growth. Current holders have less inclination to use high leverage, limiting the risk of sharp corrections.
This sentiment shift points to a more bullish structure of a deep market. It implies a continuation of a bullish Bitcoin.
Global Liquidity Index and 2-Year Cup & Handle pattern Breakout Signal Bitcoin Rally
Resistance levels, Bitcoin has followed with significant upward movements. Previous bull markets have seen this trend play out with some massive gains for BTC following each breakout.
Here, we see that Bitcoin’s bull runs are directly correlated to the Global Liquidity Index breakouts. The index, now hitting a zone where the potential for another bullish wave for BTC could be in motion.
Repeated over several cycles, this pattern suggests Bitcoin’s next major move may be only a lockstep away, as liquidity climbs higher.
If things continue like this, Bitcoin could be moving into a new bullish cycle propelled by increases in global liquidity. The anticipation surrounding this breakout could fuel buying interest and send BTC higher like past performance.
Bitcoin broke out above a 2-year Cup & Handle formation, along with a Descending Broadening Wedge. A green volume spike confirms this breakout, showing strong buying momentum.
The neckline and handle area are now being tested for support to solidify this breakout and further propel BTC to new highs.
According to this pattern, the target range for Bitcoin is between $220,000 and $320,000. the low of the handle and the breakout level.
BTC could experience a strong price rally to this range if the token successfully retests and holds above the neckline and handle support. Typically, a reliable indicator, the bullish Cup & Handle pattern adds to optimism about the long-term potential of Bitcoin.