The Bitfinex exchange believes that in the coming weeks, the cryptocurrency market may enter a phase of long-term growth.
An important factor driving the rally was the increase in the SOPR index. It turned out to be in the green zone, which means that most operations for the sale of bitcoins 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, then it could gain additional support as traders resume buying.
Exchange analysts noted that the threat of sales appears if the SOPR index declines. That is, most transactions for the sale of cryptocurrency become unprofitable, and this increases the risk of panic dumping BTC.
The Bitfinex report states:
SOPR rises during a bull run because the market is losing supply. If the index holds solidly above one, as it does now, then this may signal that we are in the early stages of a bullish trend.
