Start Selling Bitcoin When This Happens, This Quant Says

A quant has pointed out that the historical trend in the Bitcoin ratio of taker buys to seller sells could indicate the optimal time to begin selling the cryptocurrency.

Bitcoin Taker Buy Sell Ratio May Reveal Selling Opportunities

An analyst in a recent post on CryptoQuant explained how the Bitcoin “buy-sell ratio of takers” is shifting. This metric measures the relationship between the volume of Bitcoin trades where buyers take liquidity (taker buys) and those where sellers take liquidity (taker sells).

If the metric’s value surpasses 1, investors are currently prepared to buy coins at a higher cost. This pattern suggests that bullish sentiment is strongly influencing the market.

In contrast, if the marker is below the desired level, it could mean that there’s more demand to sell than to buy in this industry. This might lead many to hold negative views.

Here’s a chart displaying the development of Bitcoin’s 30-day moving average (MA) taker-to-buyer-seller ratio during the past few years.

Start Selling Bitcoin When This Happens, This Quant Says

Based on the graph presented earlier, the moving average of Bitcoin’s taker buy-sell ratio for a 30-day period has recently dipped below the 1 mark. The analyst has pointed out in the chart where the peak of the bull market in 2021 occurred, which is represented by that region on the metric.

During the peak of the bull market, the indicator dropped below 0.97 on two occasions. This finding, as per the analyst’s interpretation, signals the frenzy stage in the market where savvy investors begin offloading their assets. However, the prices remain stable despite this as less experienced investors keep jumping in due to fear of missing out (FOMO).

Up until now, the indicator has nearly reached 0.98 during its recent downturn. This suggests that we aren’t close enough to the levels where a peak could be a concern based on past market trends.

The Bitcoin buy-sell ratio, which can function as a buying indicator, specifically identifies the 1.02 threshold as significant. However, this ratio is more effective in signaling an overbought market rather than indicating oversold conditions according to quant analysis.

Recently, an analyst noted on platform X that Bitcoin investors have amassed approximately 95,000 BTC (equivalent to around $6.5 billion) collectively over the last month.

Start Selling Bitcoin When This Happens, This Quant Says

The sharp increase in holdings indicates that Bitcoin investors have been purchasing substantially more coins than miners have been producing recently. The graph demonstrates that such accumulation trends have historically preceded price surges for the asset, implying a potentially positive outlook.

BTC Price

At the time of writing, Bitcoin is trading at around $68,600, up more than 3% over the past week.

Start Selling Bitcoin When This Happens, This Quant Says

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2024-04-01 22:34