On-chain data shows that the buy-to-sell ratio of bitcoin takers has surged to levels not seen since nearly two years ago.
Bitcoin Taker buy-to-sell ratio has risen in recent days
As one analyst in CryptoQuant pointed out postalthe taker buy to sell ratio is now at its highest level in 636 days.
As the name suggests, the Taker Buy-Sell Ratio is a measure of the ratio between taker buys and taker sells.
When the value of this indicator is greater than 1, it means that the long volume is overwhelming the short volume. This trend suggests that bullish sentiment is more dominant in the market right now.
On the other hand, a ratio below this threshold means that the current taker sell volume is high. This trend naturally implies a bearish majority sentiment in the market.
Now, here’s a chart showing the trend in the buy-to-sell ratio of Bitcoin takers over the past few years:
The value of the metric seems to have surged up in recent days | Source: CryptoQuant
As you can see in the graph above, the Bitcoin taker buy-to-sell ratio has recently observed a surge in its value.
During this sudden rise, the indicator hit a high of 1.14, a value not seen since about 636 days ago.
Since these latest values are above the “1” mark, taker buy volumes are currently more dominant in the market.
By the way, the last time these highs were seen was before the start of the 2021 bull market. If a similar trend emerges this time around, the current Bitcoin taker bid-ask ratio value could prove bullish for the cryptocurrency’s price.
BTC price
At the time of writing, Bitcoin’s price is hovering around $21,500, up 9% over the past seven days. The cryptocurrency has lost 10% in value over the past month.
The chart below shows the trend of the coin’s price over the past five days.
Looks like the value of the crypto has observed upwards momentum during the past couple of days | Source: BTCUSD on TradingView
After plunging two weeks ago, Bitcoin has seen some sharp rallies over the past few days as the cryptocurrency revisits the $21,000 level.
At the moment, it is unclear whether this recovery will continue or if the coin will see a retracement anytime soon. However, as mentioned earlier, if the taker buy-sell ratio is anything to go by, then BTC could see a bullish outcome.
Featured image from Jievani Weerasinghe on Unsplash.com, charts from TradingView.com, CryptoQuant.com
