TechFlow News, July 01, CryptoQuant analyst Darkfost stated that Bitcoin's Net Supply Ratio has been in negative territory for a consecutive week, recently dropping to -0.075, triggering a buy signal. This indicator is based on the profit/loss status of Unspent Transaction Outputs (UTXO), used to evaluate the profit or loss level of the overall market supply, thereby assisting in judging whether an accumulation phase is forming.
Darkfost believes that this signal indicates that the Bitcoin market may be entering a phase with more allocation value. The last time a similar situation occurred was at the end of the bear market in late 2022. However, he also pointed out that this indicator is not specifically used to judge tops or bottoms; it may signal during rapid market declines or may appear during rapid rises.
Overall, currently multiple indicators show that selling pressure may be waning, but this does not mean that Bitcoin prices will not decline further; subsequently, it is still necessary to observe whether demand shows a substantive recovery.
