Skip to main content

Bitcoin UTXO P/L Ratio Hits 50.2 – A 30-Point Drop Could Signal the End Of This Correction

Bitcoin is at a pivotal moment, with bulls struggling to reclaim prices above $85K and bears failing to push BTC below $80K. This indecision in the market has led to growing bearish sentiment as many investors speculate whether the bull cycle is coming to an end.

Macroeconomic uncertainty and erratic decisions from U.S. President Trump continue to fuel market volatility, creating aggressive price swings across crypto and U.S. stock markets. Investors are now looking for key technical signals to determine Bitcoin’s next move.

According to CryptoQuant’s latest insights, the Bitcoin UTXO Block P/L Count Ratio Model is currently at 50.2. This metric measures how many recent BTC transactions are occurring at a profit versus a loss, providing insights into market sentiment and potential reversals.

With BTC trapped in a tight range, the market is at a make-or-break moment. If bulls reclaim momentum and push Bitcoin above $85K-$90K, a strong recovery rally could follow. However, if BTC drops below $80K, it could signal further downside ahead, confirming the worst fears of bearish investors.

Bitcoin Faces Continued Correction

Bitcoin’s downtrend deepened after losing the $100K level, with a confirmed bearish trend once BTC dropped below $90K. Since reaching its all-time high of $109K in January, Bitcoin has plunged over 29%, and the market shows no clear signs of recovery yet.

The ongoing trade war tensions between the U.S. and major global economies, including Europe, China, and Canada, have added to investor uncertainty. Macroeconomic instability, tight monetary policies, and rising inflation concerns have made risk assets, including crypto and stocks, more volatile.

Amid this backdrop, top analyst Axel Adler shared insights on X, highlighting that the Bitcoin UTXO Block P/L Count Ratio Model is currently at 50.2. This metric assesses how many recent Bitcoin transactions are occurring at a profit versus a loss, offering key insights into market sentiment and potential reversals.

Bitcoin UTXO Block P/L Count Ratio Model | Source: Axel Adler on X

Adler noted that if this metric drops just 30 points, it would reach historical levels where previous cycle corrections ended. This includes the July 2021 correction following China’s mining ban, which marked the end of a major downtrend before BTC recovered sharply.

With Bitcoin hovering between $80K and $85K, investors are watching for signs of capitulation or accumulation, which could determine the next major move in the market.

BTC Price Struggles Between $85K and $82K

Bitcoin is trading between $85K and $82K, with no clear direction for the coming days. The price action remains uncertain, as bulls struggle to regain momentum, while bears fail to push BTC below $80K.

BTC testing the 200-day MA | Source: BTCUSDT chart on TradingView

A key concern for traders is that BTC is trading below the 200-day moving average (MA) at $84,200, a critical level that often dictates market trends. If Bitcoin fails to reclaim this level, the next downside target could be below $80K, potentially testing major demand zones around $78K-$75K.

However, bulls still have a chance to step in and prevent further downside. If BTC reclaims the $85K-$86K range, this could trigger a recovery rally, bringing $90K back into play. A decisive break above $90K would signal renewed strength and a potential trend reversal, shifting sentiment back toward bullish territory.

For now, the market remains in a consolidation phase, with traders watching for a breakout in either direction. A failure to reclaim $85K could reinforce bearish pressure, while breaking above key resistance levels could pave the way for a stronger Bitcoin recovery.

Featured image from Dall-E, chart from TradingView



from Bitcoinist.com https://ift.tt/vGqwa90
Labels:

Comments

Post a Comment

Popular posts from this blog

Bitcoin ETFs Post Second Straight Week Of $500 Million Outflow — Details

The US-based spot Bitcoin ETFs (exchange-traded funds) recorded their second consecutive week of significant outflows over the last five-day trading period. This recent run of disappointing performances reflects the ongoing shift in investor sentiment in the United States. Over the past year, strong inflows into the US Bitcoin ETF market have constantly been associated with positive action for the BTC price. Fittingly, the price of Bitcoin has been consolidating over the past few weeks, struggling to pick up any real momentum. Bitcoin ETFs Record Fourth Consecutive Outflow Day According to the latest market data , the US Bitcoin ETFs registered a total daily outflow of $62.77 million on Friday, February 21. This latest round of withdrawals marked the fourth straight day (and the eighth day in the last nine trading days) that the crypto-based products would witness a net capital outflow. The Grayscale Bitcoin Trust (with the ticker GBTC) accounted for a larger percentage of Friday’...
Post a Comment
Read more

Bitcoin Remains Range-Bound As Volatility Declines – Analyst Explains Price Action

Bitcoin has experienced frustrating price action in recent weeks, leaving investors impatient about its short-term direction. The price has been testing crucial supply levels between $98K and $100K, struggling to break out as uncertainty dominates the market. The lack of a clear move has led to speculation about whether BTC is preparing for a breakout or another correction. Adding to the uncertainty, the market was hit by negative news on Friday when crypto exchange Bybit was hacked, resulting in the theft of $1.4 billion in ETH. The incident caused fear and volatility, briefly dragging prices lower. However, Bybit responded quickly to reassure investors, easing some of the initial panic and stabilizing the market. Despite this, Bitcoin continues to consolidate in a tight range. Crypto expert Daan shared an analysis on X, noting that BTC is still ranging while volatility is steadily decreasing. As price compression increases, traders are on high alert for a potential explosive move....
Post a Comment
Read more

OpenSea Dodges A Bullet As SEC Drops Investigation—Details

In a move that many in the crypto industry view as a positive signal, the US Securities and Exchange Commission (SEC) has officially discontinued its investigation into OpenSea, the leading NFT marketplace. This decision concludes months of uncertainty regarding the regulatory status of NFTs and their classification under US securities laws. SEC Decision Signals A Shift On February 21, 2025, Devin Finzer, the CEO and co-founder of OpenSea, said the SEC will not take any enforcement action against the firm. This comes following the August 2024 Wells Notice to OpenSea issued by the SEC, which indicated the possibility of legal action on alleged unregistered securities offenses. The outcome of this case suggests a possible shift in the way authorities handle NFTs, therefore affecting the whole scene of digital assets. For the industry, this outcome has been seen as a major turning point. Though they are in rivalry with OpenSea, Chris Akhavan, the Chief Business Officer of Magic Eden,...
Post a Comment
Read more