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Bitfinex, one of the world’s leading cryptocurrency exchanges, has released a report suggesting that Bitcoin (BTC) has been sold at a profit since its initial breakthrough of $30,000, indicating early signs of a bull market.
The report highlights two crucial on-chain metrics, Spent Output Profit Ratio (SOPR) and Unrealized Net Profit and Loss (NUPL), which indicate that Bitcoin has entered the early stages of a bull market.
Bitcoin Sold at a Profit
The report notes that on June 21, BTC surpassed the crucial $29,500 mark for the second time this year and has since been moving within the range between that level and $31,000.
This range has always been a key factor in determining the trend in the cryptocurrency market and, as such, represents an important psychological level. The SOPR has been above one for about two weeks since the BTC price broke through the crucial $29,500 mark, indicating that people are selling their Bitcoins at a profit on average.
The report also breaks down the events following the breakthrough of the $29,500 mark and the subsequent market range between that and the $31,000 mark from the perspective of order flow. It points out that deviating from the current range is likely crucial for Bitcoin, as retesting the range after an upward or downward movement would likely mean it serves as a crucial recovery zone if and when the price returns to it.
However, the report warns that the next move from the current range will be decisive and violent, which is unusual for the BTC price in recent times.
BTC Dominates Digital Asset Flow
According to the latest report from Coin Shares, investors continue to pour money into digital asset investment products, with inflows totaling $125 million in the second week. In the past two weeks, there have been inflows of $334 million, which accounts for nearly 1% of total assets under management (AUM).
Bitcoin remains at the center of investors’ attention, accounting for $123 million of the inflows, which is 98% of all digital asset inflows. Due to the recent price surge, the assets under management have risen to $37 billion, matching the average AUM for 2022 and reaching the highest level since early June.
Despite the recent upward movement in Bitcoin, short Bitcoin investment products experienced outflows for the 10th week, totaling $0.9 million and accounting for 59% of the managed assets. However, short Bitcoin remains the asset with the second-best performance in terms of inflows since the beginning of the year, with $60 million.
On the other hand, some altcoins saw minor inflows, with Ethereum leading with $2.7 million, followed by Cardano, Polygon, and XRP. Multi-Asset and Solana experienced minor outflows of $1.8 million and $0.8 million, respectively.
The report suggests that investors remain optimistic about Bitcoin, as the inflows make up a significant portion of the total managed assets. However, the ongoing outflows from short Bitcoin investment products indicate that some investors are betting against the cryptocurrency’s short-term performance.
BTC Sideways Movement on the 1-day Chart
BTC failed to consolidate above the $31,000 mark for two consecutive days. At the time of writing this article, BTC is trading at $30,900, representing a 0.3% decline in the past 24 hours.
The failure to consolidate above $31,000 could indicate a lack of buyer interest, potentially leading to further downward pressure on the cryptocurrency. It remains to be seen if BTC can regain footing and make another attempt to break through this crucial level.