Glassnode analysts forecast further Bitcoin gains after consolidation

Moderate spending of “old” coins, combined with a reduction in leverage on the perpetual futures market, points to the preservation of a bullish picture for Bitcoin. Analysts at Glassnode share this view.

#Bitcoin is consolidating just below the ATH as derivatives and onchain spending cool off.

The total range of the October monthly candle was $23,205, larger in USD value than all trading history from genesis to Dec 2020.

Read More in the Week Onchain👇https://t.co/HiGho5B4ni

— glassnode (@glassnode) November 1, 2021

After updating the historical maximum of the Spent Output Profit Ratio (SOPR), the values align with signs of an early bull market. Holders expect higher prices, unwilling to move coins at current levels.

aSOPR above 1 indicates the market’s ability to absorb selling pressure without significant bearish pressure on prices.

Analysts studied the difference between unrealized profits and losses based on the latest movement of coins (Net Unrealized Profit/Loss, NUPL) applicable to holders of coins older than 155 days. It remained in the 0.5–0.75 value zone.

Historically, testing this range without moving to lower levels signalled a resumption of price growth in the following weeks/months. Earlier, moving out of this range to the upside led to new all-time highs. This was the case in 2013-2014, 2017 and 2021.

In the perpetual futures market, funding rates are easing as prices consolidate. This points to a more cautious stance among traders, which is a healthy state for the market overall.

Such a dynamic between the two indicators may point to rising odds of long liquidations in perpetual futures. But the situation does not look acute after the three waves that followed the all-time high.

As reported, ForkLog узнал experts’ opinions on the prospects for continuing Bitcoin’s uptrend.

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