Bitcoin Traker Buy Ratio Plummets on Big Exchange – What That Means for Price
The Bitcoin market continues to show a lot of uncertainty, as the price shows little to no signs of recovery from the apparent volume established two weeks ago. However, on-chain data has already put forward the idea that Price is the price action of the cryptocurlocurrency
Minance and other major exchanges are Witness exchanges
In a recent post on the cryploquant platform, the cryptocurrency analyst revealed that a major change was shown by the high exchange involved in Bitcoin transactions. The relevant indicator here is the bitcoin taker buy ratio, which focuses on the amount of trading volume established by buyers against the size of the transaction. In this case, the analyst measured the ratio of purchases to minance and to the “total exchange” as a group.
A reading above 0.5 represents the presence of many buyers as opposed to a relative scarcity of sellers. On the flip side, prices are less than 0.5 points in the composition of sellers throughout the Exchanger. As reported by Cryptoonchain, the Bitcoin Taker Buy Ratio recently fell to a “year low” of around 0.47. Clearly shown on binance, the world’s largest crypto exchange, a low buy ratio of less than 0.5 is expected to return the strong selling pressure shown in the price of Bitcoin.
What is interesting about this view on selling pressure is how it follows the recent spike noted earlier in the exchange rate. Analytical analysis completes the usual captition sequence starting with a “manipulative panic,” a situation where investors move their BTC withdrawals to the exchange. After this, aggressive selling followed suit, increasing the bearish pressure on the price.
Usually, when the market records this selling high, it means that market sentiment can be in a state of fear. It is true in this case, the analyst explained that “the dominance of aggressive sellers over consumers has reached an extreme point.”
Bitcoin Market Outlook
In the meantime, there is a possibility that the pressure to shape the market could send the price of Bitcoin to the downside, seeing as the market seems to be fighting this wave.
However, Cryptoonchain re-positioned known historical trends suggesting that this type of cautionary event, where the market takes out weak hands, usually precedes the establishment of a market bottom. If history is anything to go by, the bitcoin market could be nearing price levels where it begins to see significant reversals.
For this to happen, the analyst added a caveat that there may be a situation where the 0.5 levels are returned, especially if it would happen in a large exchange like minance. As of Press Time, Bitcoin is worth around $106,900, with a small but insignificant increase of 0.3% over the previous day.
Featured image from flickr, chart from tradingview
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