The Net UTXO Supply Ratio indicator issued four consecutive sell signals at the end of May 2025. This coincided with a sharp drop in the UTXO Ratio from recent highs — a typical pattern suggesting reduced holding incentive and increased likelihood of distribution by investors sitting on unrealized profits.
Key Technical Scenarios Identified
Adler outlines two potential scenarios for Bitcoin’s near-term price movement. The primary outlook favors a period of sideways consolidation, with BTC expected to fluctuate between $95,000 and $105,000. This range would allow time for on-chain metrics to normalize, particularly the Net UTXO Supply Ratio stabilizing between 0.85 and 0.9.
An alternative, though less severe, scenario points to a possible dip toward the $92,000–$96,000 zone. This correction could test the 200-day moving average near $94,700 or fall into a known buy-order cluster at $92,000. Such a move would help release pressure built up from overbought conditions following Bitcoin’s recent all-time highs.
Market Needs to Reset After Profit-Taking Surge
Adler concludes that a reset is now needed, with momentum slowing and demand trailing behind a rise in supply. On-chain activity reflects a maturing phase of the rally, rather than sustained bullish continuation, and short-term caution may be warranted.
The analysis reinforces the view that while Bitcoin remains structurally strong, short-term overheated signals demand a phase of cooling before the next major trend can develop.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/market/bitcoin-enters-cooling-phase-as-on-chain-sell-signals-flash/