Bitcoin Supply Metric Flashes First Buy Signal Since 2022
A key Bitcoin supply indicator has printed its first buy signal since November 2022, though analysts caution BTC price may still fall further.
A closely watched Bitcoin supply metric has flashed its first buy signal since November 2022, potentially signaling the beginning of the end for the current bear market, according to new analysis published by Cointelegraph. The development marks a rare technical milestone that historically has preceded significant price recoveries for the world's largest cryptocurrency.
Despite the encouraging signal, analysts who flagged the indicator were quick to temper expectations, warning that Bitcoin's price could still move lower before any sustained recovery takes hold. Bear market bottoming processes are rarely clean affairs, and the presence of a buy signal does not guarantee an immediate reversal in momentum.
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The last time this particular supply dynamic triggered a comparable reading was in November 2022 — a period that ultimately proved to be near the cyclical bottom of Bitcoin's previous bear market. That historical parallel has drawn attention from traders and on-chain analysts watching for signs that selling pressure may be exhausting itself.
Supply-based metrics track how Bitcoin moves between wallets, exchanges, and long-term holders, offering insight into the behavior of different investor cohorts. When these metrics align in ways that suggest coins are shifting from weaker to stronger hands, analysts traditionally interpret that as a potential accumulation phase — though timing an exact bottom remains notoriously difficult even with on-chain data in hand.
Continue reading at Cointelegraph.
