As a researcher with experience in analyzing cryptocurrency markets, I find the recent on-chain data for Bitcoin intriguing. The Inter-Exchange Flow Pulse (IFP) metric, which measures Bitcoin flows to derivative exchanges, is currently below its 90-day moving average. This trend could be a sign of an upcoming price rally if the IFP moves above the average.
In the last 24 hours, Bitcoin‘s price has registered modest increases. The development follows significant on-screen indicators, specifically Inter-Exchange Flow Pulse (IFP) data, which could potentially trigger a surge in Bitcoin’s value. Simultaneously, investors are pushing for Bitcoin to regain its $65,000 mark after a series of outflows that pushed the market leader to hit monthly lows.
On-chain Data Suggest Rally
According to a recent analysis by CryptoQuant, a well-known firm specializing in the study of digital assets, the value of Bitcoin’s Incoming Funding Rate (IFP) currently falls below its 90-day moving average. This situation could potentially lead to an increase in Bitcoin’s price if the IFP manages to rise above the average. The IFP is calculated based on the flow of Bitcoin into margin trading platforms, providing insights into market trends. Essentially, a higher influx of Bitcoin into these exchanges can be indicative of a bullish market, while an outflow may signal a bearish one.
As a crypto investor, I believe in following a strategy that involves investing in Bitcoin when the Intensity Flow Perceptor (IFP) starts to trend upward. Based on historical data, shifts in the IFP’s trend, indicated by its crossing above its 90-day moving average, have signaled the beginning of bull markets for Bitcoin. Conversely, when the IFP trends downward and crosses below its 90-day moving average, it often marks the start of bear markets.
In the year 2016 and the future year 2024, the Bitcoin Indicator Factor (IFP) experienced two instances where it remained under its 90-day moving average for extended periods: for approximately 55 days in 2016 and around the end of 2023 and the beginning of 2024. In both cases, a shift followed that sparked significant gains for Bitcoin. The Bitcoin price plummeted from $46,000 to $39,000 before bouncing back to set a new record high, surpassing $73,000.
Currently, the IFP sits beneath the average price of Bitcoin over the past 90 days. Bullish investors are hopeful that this trend will reverse and lead to an increase in price once the positions change.
Bitcoin To Spur Wider Growth
The surge in Bitcoin’s value frequently triggers a ripple effect throughout the larger cryptocurrency market. Over the past day, Bitcoin’s upward trend has resulted in modest increases for various other digital currencies. Conversely, when Bitcoin dipped beneath $65,000 last week, altcoins and meme coins experienced significant outflows. A rise in Bitcoin prices can lead to further growth and enhanced market confidence. The continuous influx of funds into Bitcoin ETFs could contribute significantly to the overall crypto market’s improvement.
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2024-06-22 21:52