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If the IFP breaks above its 90-day moving average again, we may see the bulls regain strength.
What is IFP? The Inter-exchange Flow Pulse (IFP) measures bitcoin flows between spot and derivative exchanges using CryptoQuant’s Bitcoin exchange flows data. This flow data shows market sentiment. A growing (declining) amount of Bitcoin flowing to (from) derivative exchanges coincides with bull (bear) runs. The strategy seeks to get exposure to Bitcoin when the IFP is trending upward. The shift in the trend of Bitcoin flows (as defined by the IFP crossing its 90-day moving average) has been a signal of bull and bear markets (green and red areas respectively in the chart below). June 2016 Example: In the first chart, we focus only on the bear market periods. In June 2016, the IFP gave a bear signal by staying below its 90-day average for about 55 days. Then, when it broke above this average, a major bull run occurred. Will History Repeat Itself? Looking at the current data, we can see that the IFP has been below its 90-day moving average for 43 days. However, just like in the past, the IFP, which has found a local bottom, has been in an upward trend since February 7, 2024. As of now: IFP: 559.4K IFP SMA90: 568.8K If the IFP breaks above its 90-day moving average again, we may see the bulls regain strength. Conclusion: The past can provide clues to the future, but there is no guarantee that it will repeat itself. Following the data flow closely can both maximize your profits and protect you from losses. With the IFP breaking above its 90-day moving average again, we can believe that a bull market may occur in Bitcoin in 2024. Thank you for reading.