Bitcoin is currently showing two bullish signals simultaneously. The percentage of Bitcoin supply that has not been moved for over six months has reached 81%, indicating a significant amount of dormant supply. Additionally, the Inter-exchange Flow Pulse indicator has switched back to a bullish trend.
Bitcoin Supply Keeps More Coins Off The Market
According to a post on x, the 81% figure suggests that a large portion of BTC supply has remained inactive for at least six months. This accumulation of dormant supply has sparked discussions about a potential supply shock as more coins are being held without being traded.
However, it is important to note that this inactivity does not guarantee a specific price outcome. The future movement of Bitcoin will depend on whether there is a strong enough demand to absorb the available supply.
IFP Golden Cross Brings Bulls Back
The Bitcoin Inter-exchange Flow Pulse indicator has recently generated a bullish signal by forming a golden cross with its 90-day moving average.
Current BTC inflows into derivatives exchanges are surpassing the 90-day average, indicating a growing influx of capital into these platforms. Despite a bearish phase that occurred on September 12, Bitcoin continued its upward trend, even when derivatives inflows were below the 90-day average.
Bitcoin Could See Stronger Momentum Ahead
With increasing inflows into derivatives exchanges, Bitcoin may experience a stronger upward movement compared to its current trend.
Historically, Bitcoin has shown significant price increases following bullish signals from the IFP indicator. While past performance is not indicative of future results, the recent shift to a bullish signal by the IFP is a positive sign for Bitcoin.
The combination of a large percentage of dormant Bitcoin supply and a renewed bullish signal from the IFP indicator provides traders with two important signals to consider as the market awaits its next major development.
