In the realm of cryptocurrency, the Inter-exchange Flow Pulse (IFP) plays a crucial role in predicting market trends. The IFP measures Bitcoin flows in spot and derivative exchanges, providing valuable insights. A rising IFP, indicating more Bitcoin flowing into derivative exchanges, is generally a sign of a bullish period. Conversely, a falling IFP, where Bitcoin is flowing out of derivative exchanges, is usually a bearish indicator.

Historically, the IFP has proven to be a reliable predictor. For instance, in June 2016, the IFP stayed below its 90-day average for about 55 days, signaling a bear period. Once it crossed above this average, a significant bull run occurred.

Recently, we observed a similar pattern. The IFP priced below its 90-day average from December 14, 2023, to February 24, 2024. During this period, Bitcoin price corrected from 46K to as low as 39K. However, Bitcoin subsequently reached a new all-time high, suggesting a bear trap.

Currently, the IFP stands at 668.7K, slightly below its 90-day moving average of 675.5K. If the IFP rises above this average again, it could signal the return of a bullish period. Therefore, despite the current bearish trend, there is reason for optimism in the Bitcoin market.