The Bitcoin UTXO profit-loss ratio has entered a historically low range, signaling potential market bottoming, according to CryptoQuant analyst MorenoDV_. This ratio, which compares the number of UTXO blocks in profit versus loss, suggests a deeper market reset as profits narrow and losses widen. However, Moreno cautions that a confirmed bottom requires a more pronounced decline in the 365-day moving average to indicate a genuine long-term reset rather than a short-term oversold condition.
Despite the current low ratio, Moreno warns that short squeezes and temporary rebounds may occur, particularly if leveraged shorts are overcrowded. These should not be mistaken for a structural recovery. The analysis concludes that while Bitcoin shows signs of insider capitulation, historical trends indicate the market may need to endure further pressure before the bear market concludes.
Bitcoin UTXO Profit-Loss Ratio Hits Historical Low, Bottom Unconfirmed
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