Bitcoin Taker Buy/Sell Volume Shows “Buy” Signal As BTC Gears Up For Rally

Keshav Verma

3 years ago

3 mins read

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On-chain data shows the Bitcoin taker buy/sell volume is now showing a “buy” signal as the crypto looks to be gearing up for a new rally.

Bitcoin Taker Buy/Sell Volume Says Now May Be The Time To Buy

As pointed out by an analyst in a CryptoQuant post, the BTC taker buy volume recently reached a value that has historically been a green signal for the crypto.

The “taker buy volume” is an indicator that measures the long volume of Bitcoin on derivatives exchanges. The metric works by checking orders on the book to see how many takers are buyers. This volume divided by the total volume is called the taker buy ratio.

When the value of this indicator rises above 0.50, it means the majority of the order takers are currently buyers on exchanges.

On the other hand, the value of the ratio below this threshold implies that the Bitcoin short volume is higher at the moment.

An alternate indicator is the “taker sell volume,” which measures the total number of sell orders or the short volume.

Now, here is a chart that shows the trend in these Bitcoin indicators over the past few months:

Looks like the taker buy ratio has risen in the past couple of days | Source: CryptoQuant

As you can see in the above graph, the Bitcoin taker buy ratio has exceeded the value of 0.52 this week. Naturally, the sell ratio has gone down on the other hand.

In the post, the quant explains that this value of the metric has historically flashed a buy signal for the cryptocurrency. Most recently, the indicator went above this threshold on 4th Feb, following which the price of the coin observed a surge.

If this pattern holds true this time as well, it would mean that now may be a good time to stack up on Bitcoin.

BTC Price

At the time of writing, Bitcoin’s price floats around $45k, up 15% in the last seven days. Over the past month, the crypto has gained 14% in value.

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

BTC's price looks to have surged up over the past couple of days | Source: BTCUSD on TradingView

After crashing all the way down to $34k last week, Bitcoin seems to have made some solid recovery back now as the coin approaches another retest of the $45k price level.

Currently, it’s unclear whether this recovery will last as the uncertainty due to the Russian invasion of Ukraine still looms over financial markets.

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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