Analysis of unreleased Bitcoin (UTXO) trade results shows investors capitulating, which has historically coincided with bear markets.

The ratio of UTXO issued at a profit to a loss fell to the lowest level in this bear market cycle, he said CryptoQuant analyst known as Darkfost on Saturday.

This is the first time such a signal has appeared since the correction began, “which shows that the number of UTXOs issued at a loss is reaching significant levels, reflecting the beginning of a broader capitulation,” he said.

This indicator shows that markets are entering a trough phase, which may be a strategic moment for accumulation. The last time it fell this low was in the depths of the previous bear market in mid-2023, when BTC prices dropped to about $26,000.

“These periods have always been profitable for long-term investors,” Darkfost continued. “They correspond to the moment when most give up and lose interest.”

He warned that this is a process that takes time and we are dealing with a long time frame.

Bitcoin UTXO Profit Loss Indicator at Bear Market Low. Source: CryptoQuant

“The bottom signal I was waiting for just went off.” he said DurdenBTC analyst on Saturday also comments on the UTXO indicator. “It has bottomed in every cycle since 2016 and will continue to feel terrible for weeks,” he added. “If it was convenient to buy here, the signal wouldn’t exist.”

Related: Bitcoin faces modern risk of capitulation as 50k BTC moved at a loss

In a separate post, Darkfost confirmed these findings, stating that long-term bondholders are beginning to “enter the capitulation phase,” noting that the Produced Profit Profit Ratio (SOPR) in this cohort is increasingly moving towards negative territory.

But so did he he said that this correction was largely driven by the rapid boost in BTC inflows to exchanges from short-term holders.

Meanwhile, onchain analytics company Swissblock he said on Saturday that Bitcoin has likely moved beyond its initial slump, but “we’re still in the base-building phase.”

“Price is stabilizing, but momentum remains deeply negative and Bitcoin momentum has only just returned to neutral.”

Sales pressure may boost

Uncertainty and selling pressure may boost following renewed U.S. military attacks on Iranian targets over the weekend.

U.S. fighter jets carried out strikes slow Saturday night on 10 Iranian military targets at multiple locations in and near the Strait of Hormuz, in response to an Iranian drone attack on a merchant ship, reported Central Command.

BTC prices fell to $59,800 in early trading on Sunday morning, but have recovered to the $60,100 level at the time of writing.

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