Analyst: Bitcoin's first "bottoming" signal has appeared, but it does not mean the bear market is over.

BlockBeats News, June 29, crypto analyst Moreno stated in a post that the Bitcoin market is beginning to show the first clear signal of a deeper market clearing.

When the Bitcoin UTXO block profit/loss ratio is at a high level, it means that most UTXO blocks are still in profit.

This usually reflects that the market is still accumulating a large amount of unrealized gains, and also implies higher profit-taking (distribution) pressure.

Conversely, when the ratio falls into a lower range, it indicates that overall profitability is compressed, the scope of losses expands, and the market begins to enter a deeper stage of clearing and resetting.

And the current reading carries such significance.

The ratio has now fallen into a range that has historically appeared multiple times during market bottoming phases, but this does not mean the market has completed its bottoming process.

To confirm a stronger bottoming signal, the 365-day moving average still needs to decline significantly further.

This means that the market's long-term profitability structure is being fully reset, rather than just experiencing short-term oversold conditions.

In other words, Bitcoin may still need to undergo more downward pressure before truly ending the current bear market phase.

During this period, short squeezes and temporary rebounds may still occur, especially when short positions are excessively crowded.

But unless the overall profit/loss ratio re-establishes a sustainable improving trend, these rallies should not be regarded as structural reversals of the market.