A widely followed trader says Bitcoin (BTC) is showing a one-of-a-kind signal as it continues to go through a multi-month consolidation phase.
Analyst Ali Martinez tells his 129,300 followers on the social media platform X that BTC may be gearing up for a huge upside burst after decoupling from global liquidity – a metric that measures the volume of financial flows.
Prominent analysts in the industry believe that rising global liquidity often precedes Bitcoin bull markets as the increase in money supply gives investors the capital to invest in risk assets like BTC and crypto.
According to Martinez, global liquidity has been on an uptrend since Q3 of 2024, while Bitcoin has been stuck in a wide trading range for months.
“Global liquidity is on the rise again, and Bitcoin has historically been highly correlated to it. However, since July, BTC appears to be lagging behind, which could signal a unique buying opportunity!”
For now, Martinez thinks it’s important for Bitcoin to stay above BTC’s short-term holder realized price, a metric that calculates the average price at which short-term investors – those holding Bitcoin for less than 155 days – purchased their coins.
“A key signal for Bitcoin BTC to extend its bull run is reclaiming the short-term holder realized cost basis at $92,000!”
At time of writing, Bitcoin is worth $92,670.
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