Since reaching the price milestone of $52,900 on February 20, the value of BTC has experienced a decline. Analyzing BTC’s daily performance chart reveals that the onset of the four-day price decrease coincides with the moment its Oscillator began returning red bars on the upward-trending chart. This indicator gauges the intensity and trend direction of the asset over a specific period.
When it displays red bars pointing upward, it signals the presence of short-term bearish sentiment, despite the overall bullish prospects. The slight downturn in BTC’s key momentum indicators since February 20 further solidifies this position. Nevertheless, despite this, Bitcoin’s Relative Strength Index (RSI) and Money Flow Index (MFI) remain above their respective centerlines.
According to CryptoQuant’s Bullfighter analyst, Bitcoin might experience another surge in 2024, attributed to the recent uptick in Inter-Exchange Flow Perpetual (IFP), indicating a growth in optimistic sentiment. IFP figures are utilized to analyze the flow of BTC between spot and derivative exchanges. An increase in these figures suggests more BTC is flowing into derivative exchanges, often indicating rising interest and the potential for an uptrend.
Conversely, a decrease in BTC’s IFP signifies more funds flowing from derivative exchanges to spot exchanges, signaling a rise in negative sentiment and often serving as a precursor to a potential downturn.
Source: CryptoQuant
The analyst evaluated the historical performance of IFP data and noted that in 2016, BTC’s IFP experienced an extended period of 55 days below the 90-day moving average, a bear market indicator.
Related: $90 Billion USD Flows into Cryptocurrency
However, by June, these figures had surpassed the moving average and showed an upward trend, leading to a significant increase in the value of Bitcoin. Examining the current market, Bitcoin’s IFP has been on an upward trajectory since February 7, following 43 days below the 90-day moving average.
According to the analyst: “If IFP surpasses the 90-day moving average once again, we might witness the bullish camp regaining strength.”
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