Darkfost
Pain Is spreading across UTXOs
We’ve reached a point where current losses and profits are at levels typically seen during a bear market. The situation does not seem to be improving and is pushing even more investors, and in this case, UTXOs into loss. This chart illustrates the situation using a ratio that compares UTXOs in loss versus those in profit. When this ratio becomes very high (🟣), it indicates that profits are starting to weigh on the market, increasing the risk of a sell-off as those profits may be realized. Conversely, when losses become increasingly dominant, the ratio drops sharply.When it reaches certain low levels (🔵), this has often coincided with the end of a correction or a bear market. We are currently approaching that level. This suggests that the majority of investors are now under significant pressure. The lack of profit creates a negative environment and fuels fear across the market. The short-term dynamic remains fairly bearish, however this type of context can also create interesting opportunities.