Woofun AI reports that Bitcoin's UTXO block profit/loss ratio has declined to levels historically associated with market bottoms, according to analyst MorenoDV. This metric tracks the aggregate profitability of unspent Bitcoin transactions, with sharp drops indicating widespread holding at a loss, a pattern observed during the 2018 and 2022 bear market lows.

MorenoDV cautioned that this reading does not confirm an immediate bottom. A steeper decline in the 365-day moving average of the ratio is required for definitive validation. Until then, the market remains in a cautious phase with potential for further downside pressure before a sustainable recovery.