On-chain data shows that Bitcoin takers’ buy-to-sell ratio has risen to a high not seen in almost two years.
Bitcoin Taker’s buy-sell ratio has been observing an increase over the past few days
As one analyst noted in a CryptoQuant post, the buyer-buy-sell ratio is now at its highest in 636 days.
The “taker-buy-sell ratio”, as the name suggests, is an indicator that measures the ratio between taker-buy volume and taker-sell volume.
When the value of this metric is greater than one, it means that long volume is currently overwhelming short volume. Such a trend suggests that bullish sentiment is more dominant in the market right now.
On the other hand, a ratio below this threshold means that the buyers’ sales volume is currently higher. Of course, this trend suggests that the market has bearish majority sentiment.
Now here is a chart showing the trend of the buy and sell ratio of bitcoin takers over the last few years:
The value of the metric seems to have skyrocketed over the past few days | Source: CryptoQuant
As you can see in the chart above, the bitcoin taker’s buy-sell ratio has only recently seen its value increase.
During this sudden surge, the indicator hit a high of 1.14, a level it hasn’t seen in about 636 days.
Since these current readings are above the “1” mark, taker buy volumes are currently more dominant in the market.
Incidentally, these highs were last seen just before the start of the 2021 bull run. If a similar trend follows this time, then the current readings of the bitcoin buy-sell ratio may prove bullish for the crypto’s price.
BTC price
At the time of writing, the price of Bitcoin is hovering around $21.5k, up 9% over the past seven days. Over the past month, the crypto has lost 10% in value.
The chart below shows the evolution of the coin’s price over the last five days.
It looks like the value of the crypto has been witnessing bullish momentum for the past few days | Source: BTCUSD on TradingView
After taking a sharp tumble just two weeks ago, Bitcoin has seen a notable recovery over the past few days as the crypto regained the $21,000 level.
It is currently unclear if this recovery will last or if the coin will see a retrace anytime soon. However, as mentioned earlier, BTC can see a bullish outcome if the buyer-buy-sell ratio is something to walk past.
Featured image by Jievani Weerasinghe on Unsplash.com, Charts by TradingView.com, CryptoQuant.com
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