On-chain data shows that the bitcoin taker’s buy/sell ratio is now approaching a level “1” crossover, a sign that could be bullish on the crypto’s price.
Bitcoin Taker’s buy/sell ratio is observing an increase and is approaching a value of 1
As one analyst explained in a CryptoQuant post, signs could indicate that a local spike for the crypto could be coming soon.
The “Taker Buy/Sell Ratio” is an indicator that measures the ratio between Bitcoin’s long volume and short volume.
If the value of the metric is greater than one, it means that the taker’s buying volume is currently higher than the selling volume. This trend indicates that bullish sentiment is currently prevailing in the market.
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On the other hand, a ratio below one implies that the majority sentiment is currently bearish as the buyer’s selling volume is greater than the long volume.
Now here is a chart showing the trend of the buy/sell ratio of bitcoin takers over the last few months:
The value of the indicator seems to be increasing lately | Source: CryptoQuant
As you can see in the chart above, the bitcoin taker’s buy/sell ratio has increased over the past month and is now approaching a level “1” crossover.
Historically, a rise in the indicator value above this line has usually been a bullish signal for the crypto’s price.
Related Reading | Long liquidations continue to shake the market as Bitcoin struggles to settle above $30,000
The quant also indicates that the volume has increased and is about to cross a positive value. The graphic below shows this trend.
It looks like BTC volume has been increasing for the past few weeks | Source: CryptoQuant
The analyst believes that these two trends together (if they continue and the respective crossings take place) could indicate that Bitcoin’s price could soon rise and form a local top.
BTC price
At the time of writing, the price of Bitcoin is hovering around $30.3k, up 2% over the past seven days. Over the past month, the crypto has lost 24% in value.
The chart below shows the evolution of the coin’s price over the last five days.
The price of the crypto seems to be surging for the past few days | Source: BTCUSD on TradingView
Bitcoin appears to have gained a foothold above $30,000 for the past two days, but the coin has still been stuck in a general consolidation trend for a few weeks.
At the moment, it is unclear when the coin could escape this range bound market and show any real price action.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com
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