Bitcoin's IFP Turns Negative, Traders Flee Derivatives

Bitcoin's price has been trading in a tight range, declining by 1.7% over the past 24 hours. However, a more concerning development is the negative turn of a key indicator, the Inter-Exchange Flow Pulse (IFP), as highlighted by CryptoQuants analyst Maartunn. This suggests that traders may be losing confidence in the market's upward momentum, potentially leading to a sell-off that could push Bitcoin's price down to $92,000.

The IFP tracks the movement of Bitcoin between spot and derivative exchanges. When Bitcoin flows out of derivative exchanges and into spot markets, it indicates that traders are closing long positions and becoming more cautious. Maartunn's analysis shows that the IFP has now turned negative, suggesting that Bitcoin is leaving derivative exchanges at a higher rate. This could lead to downward pressure on Bitcoin's price, as traders move away from high-risk bets. Historically, similar patterns have resulted in market slowdowns or even corrections.

Adding to the bearish sentiment, Bitcoin has been struggling to break past the $98,800 resistance level, despite holding above $95,000. After reaching a high of $98,800, Bitcoin lost momentum and slipped below key support levels at $97,000 and $96,000. Furthermore, a bullish trend line at $97,500 has been broken, and Bitcoin is now trading around $96,100, below the 100-hourly simple moving average. This indicates that sellers are gaining control of the market. If Bitcoin cannot reclaim the $97,000 level, a deeper decline may be on the horizon, with the next critical support zone at $92,200.