Bitcoin Taker Buy/Sell Ratio Short-Term Bull Signal Goes Off
July 05 2022 - 4:29PM
NEWSBTC
On-chain data shows the Bitcoin taker buy/sell ratio has recently
crossed above ‘1,’ a sign that the crypto could experience
short-term bullish momentum. Bitcoin Taker Buy/Sell Ratio Surges Up
Above A Value Of 1 As explained by an analyst in a CryptoQuant
post, the current BTC taker buy/sell ratio trend may suggest the
crypto might see sideways movement or a bullish reversal in the
short-term. The “taker buy/sell ratio” is an indicator that tells
us about the ratio between the long and short volumes in the
Bitcoin futures market. When the value of this metric is greater
than one, it means the long volume is more dominant at the moment.
Such a trend suggests that the general sentiment is bullish right
now. Related Reading | Bitcoin Long-Term Holder Capitulation
Approaching Bottom Zone, But Not Quite There Yet On the other hand,
the indicator’s value being less than that implies that the selling
pressure is currently stronger than the buying pressure in the
Bitcoin market. Now, here is a chart that shows the trend in the
BTC 50-day moving average taker buy/sell ratio over the last year:
Looks like the value of the metric has surged up in recent weeks |
Source: CryptoQuant As you can see in the above graph, the quant
has marked the relevant points of trend for the Bitcoin taker
buy/sell ratio. It seems like whenever the indicator has sunk below
a value of one, the coin’s price has observed a bearish trend soon
after. Related Reading | Experts Are Calling Out That Bitcoin
Is Dead. Projects Like Gnox (GNOX) And Fantom (FTM) Ushering In New
Age Of Crypto. Similarly, the ratio crossing over the one line has
usually been followed by a bullish reversal or sideways movement
for the crypto. In recent weeks, the taker buy/sell ratio’s value
has once again observed a surge and has now gone past the “one”
threshold. If the past trend is anything to go by, this could mean
that Bitcoin may have either a temporary bullish reversal or
sideways movement in store for the near future. BTC Price At the
time of writing, Bitcoin’s price floats around $20.5k, up 2% in the
last seven days. Over the past month, the crypto has lost 31% in
value. The below chart shows the trend in the price of the coin
over the last five days. The value of the crypto seems to have shot
up over the past day | Source: BTCUSD on TradingView Over the last
few days, Bitcoin has been mostly consolidating sideways. However,
in the past twenty-four hours or so, the coin’s value seems to have
gained some upwards momentum as it now breaks above the $20k mark
again. Featured image from Kanchanara on Unsplash.com, charts from
TradingView.com, CryptoQuant.com
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