Bitcoin's average buy price for holders of 1-3 months has consistently served as a pivotal support and resistance level. Historical data shows that when Bitcoin's price breaks through or is supported by this average buy price, significant price increases often follow. Conversely, when this metric acts as resistance and Bitcoin fails to surpass it, a bearish trend is observed.

A notable instance occurred when Bitcoin reached $73K but couldn't break through the average buy price of 1-3 month holders, leading to a bearish movement. With the recent 50bp rate cut by the U.S. Federal Reserve, Bitcoin is once again testing this critical on-chain metric. Monitoring this average buy price is essential for predicting Bitcoin's future price direction.