Analyst: Bitcoin’s first "bottoming" signal has emerged, but this does not mean the end of the bear market.

Crypto analyst Moreno published a note stating that the Bitcoin market is now showing the first clear signs of a deeper market clearing phase. When Bitcoin’s UTXO profit/loss ratio is at a high level, most UTXO blocks remain profitable, typically reflecting the market still holds large unrealized gains and signals high profit-taking (distribution) pressure. Conversely, when this ratio falls to a lower range, overall profit levels contract, losses widen, and the market enters a deeper clearing and reset phase. The current reading fits this pattern. The ratio has now dropped into a range that has historically coincided with Bitcoin’s market bottoming phases, though this does not mean the market has completed bottoming. To confirm a stronger bottoming signal, the 365-day moving average needs to decline significantly further — a sign the market’s long-term profit structure is undergoing a full reset, not just a short-term oversold condition. In other words, Bitcoin may still face additional downward pressure before exiting its current bear market phase. Short squeezes and temporary rallies could still occur, especially if short positions become overly crowded. However, unless the overall profit/loss ratio establishes a sustainable improvement trend, these upward moves should not be viewed as a structural market reversal.