Bitcoin Taker Buy / Sell Ratio Short-term Bull signal goes off

Data on the chain show that the Bitcoin-taker-buy-sell ratio has recently crossed above ‘1’, a sign that the crypto may experience short-term bullish momentum.

The purchase / sale ratio for Bitcointaker rises above a value of 1

As explained by an analyst in a CryptoQuant post, the current trend in the BTC taker buy / sell ratio may suggest that the crypto may see sideways movement or a bullish reversal in the short term.

The “taker buy / sell ratio” is an indicator that tells us about the relationship between the long and short volumes in the Bitcoin futures market.

When the value of this calculation is greater than one, it means that the long volume is more dominant at the moment. Such a trend suggests that the general sentiment is bullish right now.

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On the other hand, the value of the indicator is less than that, that the selling pressure is currently stronger than the buying pressure in the Bitcoin market.

Now, here’s a chart showing the trend in the BTC 50-day moving average for buy / sell ratios over the past year:

Looks like the value of the metric has surged up in recent weeks | Source: CryptoQuant

As you can see in the graph above, the quantum has marked the relevant trend points for the Bitcoin taker’s buy / sell ratio.

It seems that every time the indicator has fallen below a value of one, the price of the coin has observed a bearish trend shortly after.

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Similarly, the relationship that crosses one line has usually been followed by a bullish reversal or lateral movement of the crypto.

In recent weeks, the value of the buy / sell ratio has again observed an increase and has now passed the “one” threshold.

If the latest trend is anything to go by, this could mean that Bitcoin may have either a temporary bullish reversal or a sideways movement pending in the near future.

BTC price

At the time of writing, Bitcoin’s price is floating around $ 20.5k, up 2% over the last seven days. Over the past month, the crypto has lost 31% in value.

The chart below 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

In recent days, Bitcoin has largely consolidated sideways. Over the last twenty-four hours, however, it seems that the value of the coin has risen somewhat, as it now breaks above the $ 20k mark again.

Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com