Bitcoin (BTC) is showing signs of renewed bullish sentiment as its “taker buy-sell ratio” surges on multiple crypto exchanges, particularly around the $29,000 mark.
Data from South Korea-based blockchain analytics firm CryptoQuant reveals that the taker buy-sell ratio for Bitcoin reached a notable level on August 1st, registering 1.36 on the ByBit exchange. This metric, which calculates the ratio of buy volume to sell volume for market takers in perpetual swap markets, serves as an indicator of bullish trading activity when its value exceeds 1. A ratio above 1 suggests that the buy volume is surpassing the sell volume, often indicating an optimistic market sentiment.
ByBit, one of the world’s top crypto perpetual futures exchanges in terms of open interest and trading volume, recorded its highest taker buy-sell ratio in at least a year. Similarly, BitMEX saw the ratio hit a three-and-a-half-month peak of 1.17, while OKX experienced a six-month high of 1.31 on July 30.
Market takers, comprising trading firms and individual investors, place orders to buy or sell assets immediately, thereby impacting liquidity. On the other hand, market makers work to create liquidity in order books. The surge in taker buy-sell ratio data indicates a stronger demand for Bitcoin, suggesting that large investors or whales might be increasing their buying activity.
The recent failure of the bearish trend to push Bitcoin below the $29,000 level aligns with the data. Over the past weeks, Bitcoin consistently showed daily candles with extended lower wicks, indicating short-lived periods of trading below the $29,000 threshold. This trend culminated in a price jump of over 2% on a recent Tuesday, propelling Bitcoin’s value above $30,000 for the first time in a while.
According to Ki Young Ju, CEO of CryptoQuant, the significant increase in taker buy-sell ratio, particularly on lower-volume exchanges like BitMEX, often points to heightened buying activity by large investors or whales. Ju highlighted this phenomenon in a tweet, noting that “Bitcoin whales opened giga longs at $29,000.”
As Bitcoin’s market dynamics evolve, the surge in the taker buy-sell ratio offers insight into the evolving sentiment among traders and investors, suggesting a renewed bullish vigor in the crypto market.
