Bitcoin price recorded a nominal increase in the past 24 hours as on-chain metrics emerged. The asset’s Inter-Exchange Flow Pulse (IFP) data could determine the asset’s price rally. This comes at a time when Bitcoin holders are demanding their $65,000 back after days of exodus as the market leader hit a monthly low.
On-chain data suggests upside
New Report from Digital Asset Analysis Firm Cryptoquant Bitcoin’s IFP indicates that it is below its 90-day moving average and if it rises above the average, it signals a breakout. The indicator measures the inflow of BTC into derivatives exchanges to predict market trends. Simply put, Bitcoin inflows into derivatives exchanges are a sign of rising prices, while outflows signify a bearish outlook.
“The strategy suggests investing in Bitcoin when the IFP enters an uptrend. As can be seen in the chart, trend changes in Bitcoin flows (defined as the IFP crossing the 90-day moving average) signal bull and bear markets.
This situation occurred in 2016 and 2024 when bulls ignited future gains. In 2016, Bitcoin’s IFP was below the 90-day moving average but then rose for 55 days, leading to a bull market. A similar situation occurred between December 2023 and February 2024 when the IFP was below the moving average.
Bitcoin It fell from $46,000 to $39,000 before soaring to an all-time high of over $73,000.
At the moment, the IFP is below BTC’s 90-day average and bulls are banking on a breakout in case of a position reversal.
Bitcoin drives further growth
Bitcoin rallies often lead to broader market gains. In the past 24 hours, the asset’s positive momentum has led to slight gains in other crypto assets. Last week, Bitcoin dipped below $65,000, sparking an exodus of altcoins and meme coins. A sharp rise in BTC price could lead to further gains and improved market sentiment. Bitcoin ETFs If inflows into these funds continue, cryptocurrencies could perform better.
Read also: DOGE, SHIB, BONK lead meme coin recovery, is the worst over?
