- Bitcoin’s Net UTXO Ratio showed four SELL signals, marking the beginning of a cooling phase after recent record-high gains.
- The price may stay between $95K and $105K while on-chain metrics reset and short-term demand catches up to supply.
- A soft correction to $92K–$96K remains likely, with technical support from the 200-day moving average and clustered buy orders.
The Net UTXO Supply Ratio has flashed four consecutive SELL signals at the end of May 2025, indicating a shift in market momentum. This development suggests the Bitcoin market is entering a cooling phase after an overheated rally.
Net UTXO Supply Ratio Triggers SELL Warnings
According AxelAdlerJr, the Net UTXO Supply Ratio metric has issued four back-to-back SELL signals. This movement was accompanied by a noticeable drop in the UTXO Ratio from recent local highs. Historically, this pattern signals a phase where profit-taking outweighs fresh demand.
This setup often marks the transition from an aggressively bullish phase to a more neutral or corrective state. The increase in unrealized profit among holders weakens the incentive to continue holding and opens the door for more selling pressure.
The chart reflects a market where the available supply is outweighing active demand, a typical behavior seen during periods of market exhaustion. The response to this setup is usually a combination of price consolidation or a moderate retracement.
Possible Cooling Phase Between $95K and $105K
AxelAdlerJr outlined two scenarios. The primary scenario anticipates Bitcoin trading sideways between $95,000 and $105,000. This range-bound movement is expected to persist until the Net UTXO Supply Ratio returns to a stable level between 0.85 and 0.9.
Sideways trading in this zone often allows the market to stabilize without initiating sharp drawdowns. It gives on-chain activity time to normalize while maintaining investor confidence. This kind of pattern has appeared in earlier cycles during periods of reduced volatility following new all-time highs.
During this stage, the market typically enters a low-volatility regime as both buyers and sellers adjust expectations. Such a setup may attract cautious investors, preparing for the next major movement.
Mild Correction Could Follow ATH Surge
The alternative scenario mentioned by AxelAdlerJr suggests a mild pullback ranging between $92,000 and $96,000. A key level to monitor is $94,700, aligning with the 200-day moving average. Below that, a strong buy-order cluster sits around $92,000.
This type of pullback is considered a normal market response after an extended bullish trend. It allows short-term overbought conditions to reset and can provide new entry points for long-term participants.
Should the market dip toward these levels, it may relieve the pressure building from recent gains and create room for further upside. A short correction could also support healthier long-term growth by flushing out weak hands.
As it stands, the metrics point toward a cooling market where stability or slight corrections are more probable than continued parabolic growth.
