- Bitcoin’s inter-exchange flow pulse has been trending upwards over the past few weeks.
- The coin’s historical performance shows that this could be a harbinger of another rally.
Bitcoin [BTC] There could be further upside in 2024 as the asset's recent increase in Inter-Exchange Flow Pulse (IFP) suggests an increase in bullish sentiment.
Pseudonymous CryptoQuant analyst Bullfighter has concluded this in a new report report.
The IFP metric is used to analyze BTC flows between spot exchanges and derivatives exchanges. If the metric is rising, it suggests that more BTC is flowing into derivatives exchanges.
This movement often indicates growing interest and potential for a bull run.
Conversely, if BTC's IFP falls, it suggests that 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 bearish trend.
The analyst assessed the historical performance of the metric and noted that in 2016, BTC's IFP was below its 90-day moving average for an extended period (55 days), indicating a bear market.
However, in June, this indicator broke the average and trended upwards, resulting in a significant increase in the price of the coin.
Source: CryptoQuant
A look at the current market showed that BTC's IFP has been trending upwards since February 7, after being below its 90-day moving average for 43 days.
According to Bullfighter:
“If IFP breaks back above its 90-day moving average, bulls could regain strength.”
Why you have to look both ways
Since BTC hit the $52,899 price mark on February 20, its value has been declining. According to CoinMarketcap data, the coin was trading at $51,658 as of this writing, down 2% of its price over the last four days.
An assessment of BTC's performance on the daily chart shows that the start of the price decline four days ago coincided with when its Awesome Oscillator began returning red, upward-sloping histogram bars.
This indicator measures the strength and direction of an asset's trend over a specific period of time.
When red, upward-facing histogram bars appear, it signals that there is a pessimistic mood despite the generally optimistic outlook.
Source: BTC/USDT on TradingView
Read Bitcoins [BTC] Price prediction 2024-25
The slight decline in key BTC momentum indicators since February 20th lends credence to this position.
Nevertheless, the coin's Relative Strength Index (RSI) and Money Flow Index (MFI) remained above their respective midlines at press time.
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