Bitcoins regained over $70,000 value in the past 24 hours, defying the unfavorable trading volume indicator for the cryptocurrency.
Bitcoin Net Taker Volume Has Seen Some Large Negative Spikes Recently
In a recent post on X, Maartunn from the CryptoQuant Netherlands team shared that larger-than-usual selling spikes have emerged in the Bitcoin Net Taker Volume as noted.
The “Net Taker Volume” is a metric that monitors the gap between the number of Bitcoin being bought and sold as takers in perpetual swap contracts. Although it may seem unusual, these volumes can indeed differ. According to CryptoQuant’s data guide, this discrepancy can provide insights into market sentiment and potential price movements.
In simple terms, the idea can be perplexing since every deal involves both a purchaser and a vendor of the specific asset. However, it’s essential to recognize that the role of the intermediary (market maker) determines whether we’re dealing with purchasing volume or seller volume (based on whether the transaction takes place at the ask price or bid price).
When the buyer volume exceeds seller volume, indicated by a positive value for this metric, it signifies a strong buying interest currently prevailing. This situation suggests that most traders hold a bullish outlook.
Alternatively, the decrease in buying interest among sellers, as indicated by the negative sign, could mean that an increasing number of them are prepared to offload the coin at lower prices. This points towards a predominantly bearish sentiment in the market.
Now, here is a chart that shows the trend in the Bitcoin Net Taker Volume over the past year:
The graph above indicates a significant drop in Bitcoin Net Taker Volume lately, suggesting that more sell orders than buy orders have been executed on the market.
The Net Taker Volume has shown large red spikes persistently in charts, according to analysis by Maartunn. He explains, “Bitcoin is experiencing heavy selling pressure, with greater volume of sell-offs observed in the Net Taker Volume.”
Despite the pessimistic outlook in the market, Bitcoin’s price has surprisingly maintained its ground. Although the bullish momentum has weakened with the Net Taker Volume spikes, it’s noteworthy that Bitcoin has displayed resilience against any significant price drops.
The size of the red spikes in the Net Taker Volume chart has been diminishing even though they have persisted in appearing regularly.
If the current downward trend persists, there’s a chance that bearish sentiment may exhaust itself, leading to increased buying activity for Bitcoin. We’ll soon find out how this unfolds based on the development of the indicator.
BTC Price
Yesterday, Bitcoin dipped beneath $68,000, but it has rebounded since then and is currently being traded at approximately $70,800.
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2024-04-12 01:16