Inter-exchange Flow Pulse (IFP) measures Bitcoin flows between spot and derivative exchanges using CryptoQuant's Bitcoin exchange flow data. This flow data shows market sentiment. The amount of Bitcoin increasing (decreasing) towards (from) derivatives exchanges is in line with the bullish (bearish) trend.

This strategy seeks to gain exposure to Bitcoin when IFP is trending up. Bitcoin flow trend changes (as defined by the IFP crossing the 90-day moving average) have been both bullish and bearish market signals.

Example June 2016:

In the first chart, we focus only on bear market periods. In June 2016, the IFP gave a bearish signal by staying below the 90-day average for about 55 days. Then, when it goes beyond this average, a significant bullish rise occurs.

Will History Repeat?

Looking at the current data, we can see that the IFP has been below the 90-day moving average for 43 days. However, as in the past, the IFP which has found a local bottom, has been in an uptrend since February 7, 2024.

At the moment:

IFP: 559.4K

SMA90 IFP: 568.8K

If the IFP surpasses the 90-day moving average again, we may see bullish strength return.

Conclusion:

The past can provide clues to the future, but there is no guarantee that history will repeat itself. Following the data flow closely can maximize your profits and protect you from losses.

With IFP surpassing the 90-day moving average again, we can believe that a bull market is possible for Bitcoin in 2024.

Thank you for reading.

Written by Bullfighter