Bitcoin nears $90,000 milestone as November rally gains steam
Bitcoin's November surge: analysts eye $100,000 breakthrough amid balanced market sentiment
Bitcoin's recent rally is edging closer to the much-anticipated $100,000 level. Kicking off the week with a powerful start, Bitcoin opened around $80,000 and quickly surged by 10% within a single day, reaching $88,000. Now trading near $87,800, Bitcoin sits just 2% away from the $90,000 mark, raising expectations for a potential run toward six figures before the month wraps up.
November alone has seen Bitcoin rise by an impressive 33%, showcasing a strong momentum that’s keeping traders and enthusiasts on their toes. So, what’s fueling this surge, and does the data suggest this momentum can hold?
Funding rates and SOPR provides market sentiment
Two important metrics provide clues to the current market sentiment: the funding rate and the Spent Output Profit Ratio (SOPR). Funding rates measure the cost paid between long and short positions in Bitcoin’s futures market, helping to identify whether traders are overly optimistic. Right now, funding rates are not showing signs of extreme behavior. According to analysts, this indicates a balanced but yet bullish market environment.
Another metric, SOPR, helps track profitability trends, especially when smoothed with a 30-day moving average. Higher profitability often signals that traders are cashing in on gains, potentially cooling off the rally. Currently, SOPR levels indicate a market enjoying profitable trades without signs of overheating, suggesting this upward momentum may still have room to grow.
If the current pace holds, Bitcoin might break the psychological barrier of $100,000 before the end of November. Only 14% away from this goal, Bitcoin is in striking distance of making history. For those following Bitcoin's trajectory, these metrics offer a clearer view of market sentiment and risk, highlighting a steady rally that’s not yet showing red flags.
Bitcoin inched up 1% on Thursday, setting yet another record high. This latest milestone follows Wednesday’s 10% surge, sparked by optimism around Trump’s election victory.
