Bitcoin Bottom Signal Emerges Amid Ongoing Bear Market

Bitcoin is trying to hold onto support around $60,000 as it faces several negative factors, including large capital outflows from US spot ETFs and a strong dollar.

The analytics firm QCP Capital predicts that Bitcoin could reach $55,000, which is also the price range of put options being bought in the market for the end of July. The risk reversal indicators largely favor put options at this level.

However, CryptoQuant analyst MorenoDV notes that on-chain indicators are showing a potential bottoming signal for Bitcoin. The Bitcoin UTXO block profit/loss ratio has fallen to a historically low level, which is often seen during market lows.

But MorenoDV warns that this doesn't necessarily mean the bottom has been reached. A stronger signal and a steeper decline in the 365-day moving average are needed for a more conclusive bottom signal.