Bitcoin Supply Metric Flashes First Buy Signal Since 2022
A key Bitcoin supply indicator just printed its first buy signal since Nov. 2022, but analysts warn BTC could still drop further.
A closely watched Bitcoin supply metric just fired its first buy signal since November 2022 — and if you remember what happened after that last signal, you know this is worth paying attention to. The indicator is pointing toward a potential end to the current bear market cycle, giving long-term bulls something to get excited about for the first time in years.
Here's the catch: analysts aren't telling you to back up the truck just yet. The signal may be flashing green, but Bitcoin's price could absolutely still grind lower before any meaningful recovery takes hold. Bear markets have a nasty habit of shaking out impatient money right before the turn, and this one isn't confirmed over.
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What makes this reading significant is the historical context. The last time this supply metric triggered a comparable signal was November 2022 — right around Bitcoin's cycle bottom near $15,000. That turned out to be one of the best entry windows of the entire cycle. Traders who acted on it and held were rewarded handsomely over the following 18 months.
Supply-side metrics track how coins are moving — or not moving — on-chain. When long-term holders accumulate and fewer coins flow to exchanges, it tends to signal that sophisticated money is positioning quietly ahead of a trend reversal. That's the kind of behavior this indicator appears to be capturing right now, suggesting conviction is building beneath the surface even as price action stays ugly.
Bottom line: this isn't a guaranteed bottom call, and the analysts behind this reading are being appropriately cautious. But as a signal for where we are in the broader cycle, it's one of the more encouraging data points bears have had to contend with in a while. Continue reading at Cointelegraph.
