As mentioned above, a drop below 1 signals that bitcoin holders are cashing out their holdings at a loss during a market downturn, while a value above 1 indicates that the owners of the spent outputs are in profit at the time of the transaction.

When the ratio drifts back towards 1 in a bull market, it's time to buy and inversely when the ratio drifts up towards 1 in a bear market, it's time to sell.

This is the key takeaway, I think. Thanks for the education!