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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Bitcoin Taker Buy/Sell Ratio Approaches Bullish Cross

Keshav Verma
Keshav Verma
3 years ago
3 mins read
Bitcoin

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On-chain data shows the Bitcoin taker buy/sell ratio is now approaching a crossover with the “1” level, a sign that could be bullish for the crypto’s price.

Bitcoin Taker Buy/Sell Ratio Observes Rise, Almost Reaches A Value Of 1

As explained by an analyst in a CryptoQuant post, signs may suggest that a local top could soon be coming for the crypto.

The “taker buy/sell ratio” is an indicator that measures the ratio between the Bitcoin long volume and the short volume.

When the value of the metric is greater than one, it means the taker buy volume is higher than the sell volume right now. This trend indicates that a bullish sentiment is dominant in the market at the moment.

Related Reading | Bitcoin NUPL Touches Lows Not Seen Since COVID Crash, Rebound Soon?

On the other hand, the ratio being below one implies the majority sentiment is bearish currently as taker sell volume is more than the long volume.

Now, here is a chart that shows the trend in the Bitcoin taker buy/sell ratio over the last few months:

Bitcoin Taker Buy/Sell Ratio

The value of the indicator seems to have observed a surge recently | Source: CryptoQuant

As you can see in the above graph, the Bitcoin taker buy/sell ratio has been rising over the past month and is now approaching a crossover with the “1” level.

In the past, an increase in the indicator’s value above this line has usually been a bullish signal for the crypto’s price.

Related Reading | Long Liquidations Continue To Rock Market As Bitcoin Struggles To Settle Above $30,000

The quant also points out that the volume has been going up and is about to cross above a positive value. The below chart shows this trend.

Bitcoin Volume

Looks like the BTC volume has been going up in recent weeks | Source: CryptoQuant

The analyst believes that these two trends together (if they continue on and the respective crosses take place) may indicate that the price of Bitcoin could see an increase soon and form a local top.

BTC Price

At the time of writing, Bitcoin’s price floats around $30.3k, up 2% in the last seven days. Over the past month, the crypto has lost 24% in value.

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

Bitcoin Price Chart

The price of the crypto looks to have observed a rise over the last couple of days | Source: BTCUSD on TradingView

Bitcoin seems to have gained some footing above the $30k level in the past two days, but the coin has still been stuck in an overall trend of consolidation for a couple of weeks now.

At the moment, it’s unclear when the coin may escape this rangebound market and show some real price movement.

Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com
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Keshav Verma
Keshav Verma

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

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