Bitcoin Taker Buy/Sell Ratio Shows “Buy” Signal As BTC Lifts Off

Keshav Verma

1 year ago

3 mins read

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On-chain data shows the Bitcoin taker buy/sell ratio is now lighting up a “buy” signal as the price of the crypto begins to take off.

Bitcoin Taker Buy Sell Ratio Suggests Now May Be A Good Time To Buy

As explained by an analyst in a CryptoQuant post, the taker buy sell ratio metrics can be used to find viable entry and exit spots in the market.

The “Bitcoin taker buy volume” is an indicator that measures the volume of buy orders filled by takers in perpetual swaps. Similarly, the “taker sell volume” measures the amount of sell orders.

The “taker buy ratio” (or its sell counterpart) is defined as the ratio between the buy volume and the total volume on perpetual swaps.

When the value of the taker buy ratio goes up, it means the buyers are currently willing to buy coins at a higher price. Such a trend shows that the buying pressure is currently stronger than the selling pressure.

On the other hand, taker sell ratio moving up would indicate a shift towards a more bearish sentiment in the market.

Now, here is a chart that shows the trend in these indicators over the past couple of years:

The taker buy ratio seems to have crossed the 0.52 mark recently | Source: CryptoQuant

As you can see in the above graph, the quant has marked the important periods of trend. It looks like whenever the taker buy ratio has moved above the 0.52 level, a buying spot has been signaled for Bitcoin.

On the other hand, the taker sell ratio touching similar values has historically indicated a selling point for the crypto.

It seems the value of the taker buy ratio just passed the 0.52 mark recently, suggesting around now may be an ideal buying opportunity for Bitcoin.

BTC Price

At the time of writing, Bitcoin’s price floats around $43.3k, up 12% in the last seven days. Over the past month, the crypto has accumulated 4% in gains.

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

BTC's price has shown some sharp uptrend over the past week | Source: BTCUSD on TradingView

After a long period of downwards movement, Bitcoin has finally enjoyed some constant uptrend over the past week. Earlier in the day, the coin’s price briefly broke above $45k before sliding down to the current levels.

It’s unclear at the moment if this trend will continue, or if it’s just a bull trap. However, if the taker buy ratio is anything to consider, the outcome of the coin may be bullish.

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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