The analysis of Bitcoin’s unspent transactions outputs (UTXOs), shows investors capitulating. This pattern has coincided historically with the bottom of bear markets.
The number of UTXOs that were spent at a profit versus those which were lost has reached its lowest levels in the bear market cycle. said CryptoQuant Darkfost is an analyst who appeared on Saturday.
The first time since the correction began, this signal is triggering. “demonstrating that the number of UTXOs spent at a loss is reaching significant levels, reflecting the start of a broader capitulation,” “He said”
This metric indicates that the markets have entered a bottoming stage, and this could be an ideal time for strategic accumulation. Last time the index fell to this low, it was at the height of the last bear market mid-2023. BTC prices The average annual income for Americans dropped to $26,000.
“These periods have always been profitable for long-term investors,” continued Darkfost. “They correspond to the moment when the majority gives up and loses interest.”
He said that this is a lengthy process and it will take time.
Bitcoin UTXO Profit Loss Ratio at Bear Market Low. Source: CryptoQuant
“The bottom signal I’ve been waiting for just fired,” said DurdenBTC, an analyst on Saturday commented also on the UTXO Ratio. “It’s caught every cycle low since 2016, and it will still feel terrible for weeks,” he said. “If buying here were comfortable, the signal wouldn’t exist.”
Related: Bitcoin faces fresh capitulation risk as 50K BTC moved at a loss
Darkfost, in a different post, confirmed that the long-term owners are beginning to lose their value. “enter a capitulation phase,” This cohort’s Spent Output Ratio is moving more and more into the negative.
He also said The rapid rise in BTC flows to exchanges, mainly from short-term investors, has been the main driver of this correction.
Swissblock is a company that offers onchain analysis. said Bitcoin’s initial collapse is unlikely to continue, according to a report on Saturday. “we’re still in the base formation phase.”
“Price is stabilizing, yet momentum remains deeply negative, and Bitcoin impulse has only just returned to neutral.”
The pressure to sell may increase
Following the US military’s continued strikes against Iranian targets on the weekend, uncertainty and sales pressure could increase.
US fighter planes launched strikes against 10 Iranian targets near or in the Strait of Hormuz in various locations late Saturday evening in response an Iranian drone strike on a commercial vessel. reported Central Command
BTC price fell to $59800 early on Sunday morning but recovered to $60100 at the time of this writing.
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Source: cointelegraph.com
