Key Points
An upward trend has been observed in the Inter-exchange Flow Pulse (IFP) of Bitcoin in recent weeks. Historically, such a trend has often preceded a rally.
Bitcoin’s Potential Bull Run
The IFP of Bitcoin may suggest the possibility of another bull run in 2024. This is due to the recent increase in the asset’s IFP, indicating a growth in bullish sentiments. This analysis is based on a report by an anonymous CryptoQuant analyst, Bullfighter.
The IFP metric is utilized to examine Bitcoin flow between spot and derivative exchanges. An increase in this metric implies a rise in the number of Bitcoins moving into derivative exchanges. This typically signifies an escalating interest and the potential for a bull run.
On the other hand, a decrease in Bitcoin’s IFP suggests an increase in coins moving from derivative to spot exchanges. This is usually an indicator of growing negative sentiments and a potential bear run.
Bullfighter’s analysis of the metric’s historical performance revealed that in 2016, Bitcoin’s IFP stayed below its 90-day moving average for an extended period (55 days), signifying a bear market. However, by June, the metric had risen above the average and trended upward, which was followed by a considerable increase in the coin’s price.
Presently, Bitcoin’s IFP has been on an upward trend since February 7th, after being below its 90-day moving average for 43 days. Bullfighter stated, “If the IFP breaks above its 90-day moving average again, we may see the bulls regain strength.”
Despite Bitcoin reaching a price of $52,899 on February 20th, its value has since dropped. According to CoinMarketcap’s data, the coin’s price was $51,658 at the time of writing, marking a 2% drop in the past four days.
An examination of Bitcoin’s performance on the daily chart revealed that the start of the price dip four days ago coincided with when its Awesome Oscillator began to return red upward-facing histogram bars. This indicator measures the strength and direction of an asset’s trend over a given period.
When the Awesome Oscillator displays red upward-facing histogram bars, it indicates bearish sentiments despite a generally bullish outlook. The slight decrease in Bitcoin’s key momentum indicators since February 20th supports this view.
However, at the time of writing, Bitcoin’s Relative Strength Index (RSI) and Money Flow Index (MFI) were still above their respective center lines.
