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On-chain data shows that the Bitcoin taker buy-sell ratio has risen to a high not seen since nearly two years ago.
Bitcoin Taker Buy Sell Ratio observes an increase in recent days
As noted by an analyst in a CryptoQuant afterthe taker’s buy-to-sell ratio is now at its highest value in 636 days.
the “taker buy sale ratio”, as the name suggests, is an indicator that measures the ratio between the taker’s buying volumes and the taker’s sales volumes.
When the value of this metric is greater than one, it means that the long volume is currently overpowering the short volume. Such a trend suggests that bullish sentiment is currently more dominant in the market.
On the other hand, the ratio below this threshold implies that the buyer’s sales volume is currently higher. This trend, of course, indicates that the market is in bearish majority sentiment.
Here’s a chart showing the trend in the Bitcoin buyer’s buy-to-sell ratio over the past few years:
The value of the metric seems to have surged up in recent days | Source: CryptoQuant
As you can see in the chart above, the Bitcoin buyer-buy-sell ratio has recently seen a spike in its value.
During this sudden surge, the indicator reached a high of 1.14, a value it has not seen since about 636 days ago.
Since the latter values are higher than the “1” mark, the buyer’s buying volumes are currently more dominant in the market.
Incidentally, the last time these highs were seen was just before the 2021 bull run began. If this time also follows a similar trend, the current values for the buy-sell ratio of the Bitcoin taker could turn out to be: bullish for the price of the crypto.
BTC price
At the moment of writing, The price of Bitcoin is floating around $21.5k, up 9% over the past seven days. Over the past month, the crypto has fallen 10% in value.
The chart below shows the trend in the price of the coin over the past five days.
Looks like the value of the crypto has observed upwards momentum during the past couple of days | Source: BTCUSD on TradingView
After falling hard just two weeks ago, Bitcoin has seen a sharp recovery in recent days as the crypto regained the $21k level.
It is currently unclear whether this recovery will continue, or whether the currency will see a return soon. However, as mentioned earlier, if the buyer-buy-sell ratio is something to track, BTC could see a bullish result.
Featured image from Jievani Weerasinghe on Unsplash.com, charts from TradingView.com, CryptoQuant.com
