Analyst: Bitcoin UTXO data shows capitulation selling is underway, historically coinciding with bear market bottoms.

Shenchao TechFlow News, June 28 — According to Cointelegraph, analysis of Bitcoin's unspent transaction outputs (UTXOs) shows that investors are capitulating, a pattern historically associated with bear market bottoms. CryptoQuant analyst Darkfost stated on Saturday that the ratio of UTXOs spent in profit to those spent at a loss has fallen to the lowest level of the current bear market cycle. This is the first time this signal has been triggered since the start of this correction, reflecting the beginning of broader capitulation sell-offs.

The report notes that this indicator suggests the market is entering a bottoming phase, potentially a strategically opportune time for accumulation. The last time the indicator fell to such low levels was in mid-2023, deep into the previous bear market, when BTC prices dropped to around $26,000. Darkfost indicated that such periods have historically been profitable for long-term investors, but he cautioned that it's a process that takes time. Analyst DurdenBTC also commented on the UTXO ratio, stating that the bottom signal he had been waiting for has been triggered, a signal that has captured every cyclical low since 2016.

The report adds that on-chain analysis firm Swissblock said on Saturday that Bitcoin has likely passed the initial breakdown phase but remains in the bottom-building stage. Additionally, due to the U.S. military resuming strikes against Iranian targets over the weekend, uncertainty and selling pressure may increase. BTC prices briefly dropped to $59,800 early Sunday morning but have since recovered to the $60,100 mark at the time of writing.