Bitcoin Taker The buy/sell volume increases as the price experiences volatility

On-chain data shows both Bitcoin taker buy and taker sell volumes recorded large spikes over the past 24 hours as the price goes through volatility.

Buying and selling volumes for Bitcointaker have risen to high values

As pointed out by an analyst in a CryptoQuant post, both BTC taker buy and taker sell volumes reached more than $1.8 billion yesterday.

“Taker buy/sell volume” is an indicator that measures Bitcoin long and short volumes on derivatives exchanges. The calculation distinguishes between these two volumes based on whether the transaction takes place at the selling price (taker buy) or the bid price (taker sell).

When these volumes are high, it means that the exchanges are receiving a large amount of orders right now. This type of trend usually leads to higher volatility in the price of the crypto.

On the other hand, low values ​​suggest that there is little activity in the market at the moment, which could result in more volatile price action for BTC.

Now, here’s a chart showing the trend in buying and selling Bitcoin takers over the past couple of weeks:

The values of the two metrics seem to have shown large spikes during the past day | Source: CryptoQuant

As you can see in the graph above, Bitcoin taker-buy and taker-sell volumes have seen quite sharp increases recently.

These peaks have come shortly after central bank chairman Jerome Powell issued an interest rate warning in a speech yesterday.

Buying volume took just one hour to reach $1.8 billion, while selling volume rose even higher to around $1.92 billion.

The value of Bitcoin observed a drop below the $20k level for some time after this increase in market activity. Currently, it is unclear if this was it for the volatility or if the coin will continue to see more sharp price action in the near future.

BTC price

At the time of writing, Bitcoin’s price is hovering around $19.8k, down 6% in the last seven days. Over the past month, the crypto has lost 6% in value.

The chart below shows the trend in the price of the coin over the last five days.

Looks like the value of the crypto has sharply declined over the last twenty-four hours | Source: BTCUSD on TradingView

After moving mostly sideways over the past week, Bitcoin appears to have broken out of the range today, as the crypto has dipped below the $20k mark for the first time since mid-July.

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