Bitcoin has just broken through the critical $60,000 barrier, giving relief to investors and analysts who worried that a loss of this level could signal the end of the bull run. The uncertainty in the market is palpable, with some fearing that this recapture of the $60,000 level is just a bull trap and that the rally has run its course.

However, new data from CryptoQuant suggests that the bull run is far from over. The data indicates that despite the recent dip, Bitcoin could still be on track for further gains.

Rising Bitcoin IFP Signals Renewed Bullish Momentum

CryptoQuant recently shared data about X which highlights a significant shift in investor behavior, suggesting that we are entering a new bullish phase. Their charts focus on the Bitcoin Inter-exchange Flow Pulse (IFP), a key metric that measures Bitcoin flows between spot and derivatives exchanges. This metric is crucial for understanding market trends and investor sentiment.

A rising IFP typically signals a bullish phase as it indicates that more Bitcoin is moving onto derivatives exchanges, suggesting that traders are preparing for higher prices. Conversely, a falling IFP is often seen as a bearish signal as it indicates that Bitcoin is moving out of derivatives exchanges, reflecting a more cautious or pessimistic market sentiment.

The IFP data shows that Bitcoin flows are now increasing, indicating that more Bitcoin is moving to derivatives exchanges. This trend is generally considered a sign of a bullish phase, as traders typically move money into derivatives when they expect rising prices. The rising IFP suggests that investors are starting to take risks, mirroring behavior seen in previous bull markets.

Bitcoin $60,000 Level Is Crucial For Bulls

Bitcoin is currently trading at $60,495, a critical juncture that could determine its short-term trajectory. Bitcoin needs to hold this level and break the next local resistance at $62,729 to maintain its upward momentum.

This price is particularly important because it lines up with the daily 200-moving average, a widely watched indicator of market strength that currently stands at $62,842. A close above this moving average would signal renewed bullish momentum and likely pave the way for further gains.

However, a loss of the $60,000 mark would be cause for concern. This psychological barrier is of great importance and a fall below it could dampen market sentiment, potentially leading to increased selling pressure.

Volatility and uncertainty continue to impact Bitcoin’s price action, making it a challenging environment for traders. Despite these fluctuations, many investors and analysts remain confident that prices will eventually rise, driven by strong market fundamentals and growing institutional interest.

Cover image of Dall-E, charts by Tradingview