Journalist
Posted:
- Bitcoin’s Inter-exchange Flow Pulse has been on an upward trend in recent weeks.
- The historical performance of the coin shows that this could be a harbinger of a new rally.
Bitcoin [BTC] may witness another bull run in 2024 as the recent rise in the asset’s Inter-exchange Flow Pulse (IFP) suggested the growth of bullish sentiment.
The pseudonymous CryptoQuant analyst Bullfighter concluded this in a new one report.
The IFP metric is used to analyze BTC flows between spot and derivatives exchanges. When the measure rises, it suggests more BTCs are flowing into derivatives exchanges.
This move often indicates growing interest and potential for a bull run.
Conversely, when BTC’s IFP falls, it suggests more coins are flowing from derivatives exchanges to spot exchanges. This signals a rise in negative sentiment and is usually a harbinger of a possible bear run.
The analyst reviewed the benchmark’s historical performance and found that BTC’s IFP remained below the 90-day moving average for an extended period (55 days) in 2016, indicating a bear market.
However, in June this measure broke above the average and showed an upward trend, a move that was followed by a significant increase in the price of the coin.
Source: CryptoQuant
A look at the current market showed that BTC’s IFP has been on an upward trend since February 7, after being below the 90-day moving average for 43 days.
According to Bullfighter:
“If the IFP breaks back above its 90-day moving average, we could see the bulls regaining strength.”
Why you should look both ways
Since BTC reached the price of $52,899 on February 20, its value has fallen. Per CoinMarketcaps According to data, the coin was exchanging hands at $51,658 at the time of writing, causing its price to drop 2% in the past four days.
A review of BTC’s performance on the daily chart showed that the start of the price dip four days ago coincided with the Awesome Oscillator starting to return red, upward-sloping histogram bars.
This indicator measures the strength and direction of an asset’s trend over a period of time.
When it displays red, upward-sloping histogram bars, it indicates the presence of bearish sentiment, despite the generally bullish outlook.
Source: BTC/USDT on TradingView
Read Bitcoin’s [BTC] Price forecast 2024-25
The slight decline in BTC’s key momentum indicators since February 20 has given credence to this position.
Despite this, the Relative Strength Index (RSI) and Money Flow Index (MFI) remained above their respective midlines at the time of writing.