BlockBeats News, June 29th - 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 high, it means that the majority of UTXO blocks are still in a profit state. This usually reflects that the market is still holding a large amount of unrealized gains, and also indicates a high level of profit-taking (distribution) pressure. Conversely, when this ratio drops to a lower range, it indicates that the overall profit level is being compressed, the loss range is expanding, and the market is starting to enter a deeper clearing and resetting phase. The current reading carries this significance.

The ratio has now fallen into a range that has appeared numerous times in history at market bottoming stages, but this does not mean that the market has completed its bottoming process. To confirm a stronger bottoming signal, the 365-day moving average still needs to significantly decrease. This implies that the long-term market profit structure is undergoing a full reset, rather than just experiencing a short-term oversold condition.

In other words, Bitcoin may still need to face more downward pressure to truly end the current bear market phase. During this period, there may still be short squeezes and temporary rebounds, especially when short positions become excessively crowded. However, unless the overall profit-loss ratio re-establishes a sustainable improvement trend, these rallies should not be seen as a structural market reversal.