Bitcoin price has notched nominal gains in the past 24 hours as on-chain metrics emerge. The asset’s Inter-Exchange Flow Pulse (IFP) data could determine a price rally for the asset. This comes as holders push for Bitcoin to reclaim $65,000 after days of outflows as the market leader touched monthly lows.
On-chain Data Suggest Rally
A new report from digital asset analysis firm CryptoQuant shows that Bitcoin’s IFP is below the 90-day moving average setting the tone for break out if it moves higher than the average. The metric measures BTC flows to derivative exchanges in a bid to project market trends. In a nutshell, Bitcoin flowing to derivative exchanges is a sign of an upward price swing while outflow signifies a bearish outlook.
“The strategy suggests investing in Bitcoin when the IFP enters an upward trend. As seen in the graph, changes in the trend of Bitcoin flows (defined by the IFP crossing its 90-day moving average) signal bull and bear markets .”
This situation occurred in 2016 and 2024 as bulls ignite on future gains. In 2016, Bitcoin IFP was under the 90-day moving average for 55 days before a change which led to a bull run. A similar situation occurred between December 2023 and February 2024 when the IFP was below the moving average. The price of Bitcoin slumped from $46k to $39k before soaring to an all-time high above $73k.
At the moment the IFP is below the BTC 90-day average with bulls expecting a breakout should positions flip.
Bitcoin To Spur Wider Growth
The performance of Bitcoin often leads to a wider market rally. In the last 24 hours, positive momentum in the asset has led to slight gains in other crypto assets. Last week, Bitcoin slipped below $65k spurring outflows in altcoins and meme coins. A jump in BTC prices can lead to more gains and improved market sentiments. Bitcoin ETFs can boost crypto performance as inflows continue into these funds.
Also Read: DOGE, SHIB, and BONK Leads Memecoin Recovery, Is The Worst Over Now?
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
✓ Share: