Bitcoin Inter-Exchange Flow Pulse (IFP) Analysis: Will the bull run continue?
In the first quarter of 2024, IFP continued to rise and the price of Bitcoin exceeded $50,000.
What is IFP?
Inter-exchange Flow Pulse (IFP) measures Bitcoin flows on spot and derivative exchanges using CryptoQuant data. These flows give us information about the market trend.
Rising IFP: If more Bitcoin is flowing into derivative exchanges, this is often considered a sign of a bullish period.
Falling IFP: If Bitcoin is exiting derivative exchanges, this is generally considered a sign of a bearish period.
The strategy recommends investing in Bitcoin when IFP is trending upwards. As seen on the chart, changes in the trend of Bitcoin flows (defined as the IFP crossing its 90-day moving average) are a signal of bull and bear markets (red areas on the chart).
June 2016 Example 👇
In the first chart, we focus only on bear seasons. In June 2016, the IFP remained below its 90-day average for approximately 55 days, giving a bear signal.
Then, when it rose above this average, a major bull run occurred.
Will the Past Repeat?
When we look at the current data, we see that IFP has been below its 90-day moving average for 43 days. However, just like in the past, IFP, which caught a local bottom, has been in a rising trend since February 7, 2024.
As of now
IFP: 559.4K
IFP SMA90: 568.8K
If IFP breaks back above its 90-day moving average, we could see the bulls gaining strength again.
✅Result
The past may give clues about the future, but there is no guarantee that it will be repeated in the same way. Keeping a close eye on data flow can maximize your profits as well as protect you from losses.
With IFP rising above its 90-day moving average again, we can believe that a bull market may occur in Bitcoin in 2024.
