The price dynamics for each asset depend on several factors, including the activity of both spot and perpetual market participants.
Bitcoin continues to experience price fluctuations due to these movements.
Currently, these two groups are showing divergent patterns, indicating a mix of bullish and bearish signals in the market. Below is an overview of what the data shows.
Bullish pattern surfaces
Average spot order size analysis points to developing bullish sentiment that could support a stronger uptrend for Bitcoin [BTC].
The average spot order size indicates which side dominates trading activity during a specific period, as indicated by the size and color of the bubbles on the chart.
Historically, Bitcoin has tended to recover when a downtrend is followed by a green dot and then a red dot formation. In previous cycles, this structure has often preceded upward price movements.
Source: CryptoQuant
This behavior is clearly visible in the last three similar events on the chart, each of which marked the beginning of a profitable phase and a notable Bitcoin rally.
However, data from Hyblock’s bid-to-ask ratio provides a more nuanced view of current spot market conditions as the metric begins to trend downward.
The data shows that while spot traders are still generally bullish, bearish participation is gradually increasing, with sell orders beginning to gain momentum.
Broader picture
Spot trading activity has remained consistently bullish in recent weeks, pushing this group’s directional bias toward a bullish stance.
In the past two days alone, spot investors have collected approximately $113.23 million worth of Bitcoin.
CoinGlass data also shows that total spot purchases exceeded $4.11 billion in December, reflecting strengthening market sentiment.
Source: CoinGlass
The perpetual market also continues to show a growing bullish bias. Trading volume in this segment favored buyers, with the Taker Buy/Sell Ratio remaining above 1.
A value above 1 indicates that the buying volume has exceeded the selling volume over the past day. Currently, total perpetual trading volume stands at $53.23 billion, an increase of 151% over the same period.
Sellers on the wrong side
Recent perpetual market facts suggests that selling has become less profitable.
The chart shows significant losses among traders who opened short positions in the past day.
Short traders posted losses of $40.56 million, while long traders lost only $2.47 million. This imbalance puts losses at approximately 16.4:1, indicating much greater liquidation risk for shorts than for longs.
Source: CoinGlass
Data on funding rates further support this view. This metric, which reflects whether long or short positions dominate the market, currently favors buyers.
The coverage ratio is approximately 0.0077%, a positive value that confirms the dominance on the long side. If this continues, a positive funding rate will remain constructive for Bitcoin’s price over the longer term.
Final thoughts
- Bitcoin’s average spot order size shows a pattern that indicates a potential price increase.
- The bid-to-ask ratio indicates that selling pressure is increasing in the spot market, even as perpetual traders remain bullish.