Bitcoin Taker Buy-Sell Ratio Rebounds Back Into “Hold” Zone

Keshav Verma

1 year ago

3 mins read

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On-chain data shows the Bitcoin taker buy-sell ratio has rebounded back into the “hold” zone after touching the selling level.

Bitcoin Taker Buy-Sell Ratio Observes Brief Uplift Recently

As explained by an analyst in a CryptoQuant post, taker buy-sell ratio may have a hint about where BTC can head next.

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

When the value of this metric is above one, it means the long volume is more than the sell volume at the moment. Such a trend suggests the sentiment is bullish in the market right now.

On the other hand, ratio values below one indicate that the general sentiment among the investors may be bearish right now.

Now, here is a chart that shows the trend in the Bitcoin taker buy-sell volume over the last couple of years:

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

As you can see in the above graph, the quant has divided the Bitcoin taker buy-sell ratio into three different zones.

The analyst believes it’s best to buy BTC when the indicator is in the green zone, and to sell during periods of the red region.

The yellow portion between these two is the “hold zone,” where holding until the metric touches the upper red level can be the ideal course of action.

Recently, the indicator plunged down and tested this upper sell level. However, since then the metric has rebounded back up a bit instead of diving inside the red zone further.

Such a formation has been observed a few times in the last two years, and the analyst has highlighted these with a purple box.

It seems like the last couple of times this trend occurred, the price of Bitcoin observed some uptrend shortly after.

So if this pattern repeats this time as well, the quant believes the crypto is likely to see another rebound this month or the next.

However, something worth noting is that one more instance of this Bitcoin taker-buy sell ratio formation took place in early 2020, but back then the price instead followed up with a crash.

BTC Price

At the time of writing, Bitcoin’s price floats around $38.3k, down 4% in the last week. The below chart shows the trend in the price of the crypto over the past five days.

It looks like the price of BTC has mostly moved sideways over the last few days | Source: BTCUSD on TradingView

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

Keshav Verma

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

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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