Bitcoin’s price has hovered around $70,000 this weekend, forming a choppy structure above that psychological level. New on-chain data has triggered a notable buy signal for BTC, suggesting a potential start to a bull market.
Has BTC Price Reached Its Cycle Bottom?
On March 21, market analyst Ali Martinez posted on X that Bitcoin may be at the start of an extended upward phase. His bullish view centers on a shift in the Inter-Exchange Flow Pulse (IFP), an on-chain metric that tracks BTC flows between spot and derivative exchanges.
The IFP helps gauge investor sentiment: it tends to rise when large amounts of BTC move to derivative exchanges, indicating higher risk appetite and possible bullish momentum. Observing the IFP relative to its 90-day moving average can highlight cycle tops and bottoms. When the IFP falls below the 90-day average, it often signals prolonged bearish conditions.
The chart shows the IFP dipped beneath its 90-day average early last year, consistent with a bear phase that followed Bitcoin’s peak above $126,000. BTC has since lost nearly 45% from that cycle high. Recently, the IFP crossed back above its 90-day average, which Martinez called a major buy signal and a sign that “big money is getting ready for a rally.”
Investors should remain cautious: the IFP can lead price moves, so any bullish effect on price may lag the on-chain signal.
Bitcoin Price At A Glance
At the time of writing, BTC trades around $70,360, up about 0.3% in the past 24 hours.
Featured image by DALL-E, chart from TradingView