Woofun AI notes that Bitcoin exhibits the first clear signal of deeper market clearing as the UTXO block profit-loss ratio declines. This drop signifies compressed overall profits and expanding losses, marking a transition into a resetting phase rather than a conclusion of the bear market.

Historical data shows this ratio range appears at market bottoms, yet confirmation requires a significant decrease in the 365-day moving average to reset long-term profit structures. Consequently, Bitcoin may face further downward pressure, with potential short squeezes viewed as temporary rebounds unless a sustainable improvement trend emerges.