Bitfinex believes that in the coming weeks, the cryptocurrency market may enter a phase of long-term growth.
An important factor approaching the rally was an increase in the SOPR index. It was in the green zone, which means that most bitcoin sales have become profitable.
SOPR has been rising since BTC broke resistance around $29,500. If the cryptocurrency holds above $30,000 in the coming days, it could gain additional support as traders resume buying.
Exchange analysts noted that the threat of sell-offs appears if the SOPR index declines. That is, most transactions to sell the cryptocurrency become unprofitable, and this increases the risks of a panic dump of BTC.
A Bitfinex report states: “SOPR rises during a bull period because unprofitable supply is falling in the market. If the index is firmly above one, as it is now, it could signal that we are in the early stages of a bullish trend.”