- Bitfinex sees signs of a bull market
- They base their forecast on the SOPR indicator and investor behavior
Crypto exchange Bitfinex unveils new analysis of onchain metrics and investor behavior. It indicates clear signs of a bull market.
The experts based their report on the indicator SOPR (Spent Output Profit Ratio).. It reflects the efficiency of bitcoin sales over a certain period of time. When the SOPR is below 1, most trades are unprofitable and there is a price decline in the market.
BTC is currently moving sideways at the $30,000 mark.. That means the SOPR of the asset remains above 1.
Experts conclude that market participants are in no hurry to sell bitcoins at a loss because they are confident in their spot positions.
The SOPR indicator has remained above 1 for the last two weeks.. This started after bitcoin passed the important $29,500 level.
“Usually the SOPR value > 1 during bull markets because there are very few break-even offers coming into the market. In both bull and bear markets, SOPR tends to find support and resistance at one, so a sustained hold above one, as we’re doing now, would signal we’re in the early stages of a bull market,” Bitfinex said.
But there is an ongoing battle between bullish and bearish sentiment in the market. Sell and buy order data are in the balance, and the coming days will determine the direction of the trend.