The moderate increase in spending on “old” coins, combined with a decrease in leverage in the perpetual contract market, indicates a continued bullish picture for Bitcoin, Glassnode analysts have said.
After reaching a new all-time high, Spent Output Profit Ratio (SOPR) values correspond to signs of an early bull market. Crypto holders expect higher prices, they do not want to move their coins to current levels.
The fact that the aSOPR remains above 1 indicates the market’s ability to absorb selling pressure without significant downward pressure on prices.
It is worth noting that in the perpetual contract market, funding rates are falling simultaneously with price consolidation. This suggests a more cautious approach by traders, which is a “healthy situation” for the market as a whole.
These dynamics of the two indicators could indicate the increasing likelihood of extended liquidations in perpetual contracts.