On-chain data shows that the ratio of Bitcoin buyers to sales has risen to a level not seen for nearly two years ago.
Bitcoin Taker’s buy and sell report observes the increase over the past few days
As pointed out by an analyst in a CryptoQuant to sendthe buy-to-buy ratio is now at its highest value in the last 636 days.
The “taker buy sell ratio”, as the name suggests, is an indicator that measures the relationship between the purchase volumes of buyers and the sales volumes of buyers.
When the value of this metric is greater than one, it means that the long volume is overloading the short volume right now. This trend suggests that a bullish sentiment is currently more dominant in the market.
On the other hand, the fact that the ratio is below this threshold implies that the sales volume of the buyers is currently higher. This trend naturally suggests that the market holds a bearish majority sentiment.
Now, here is a chart showing the trend of the Bitcoin buy and sell ratio over the past two years:
The value of the metric seems to have surged up in recent days | Source: CryptoQuant
As you can see in the chart above, Bitcoin’s buy and sell ratio has only seen a spike in its value recently.
During this sudden rise, the indicator hit a high of 1.14, a value it hadn’t seen since about 636 days ago.
Since these latter values are above the “1” sign, the purchase volumes of takers are currently more dominant on the market.
Incidentally, the last time these highs were observed was just before the 2021 bull run began. If a similar trend follows this time as well, the current Bitcoin buy and sell ratio values may turn out to be bullish. for the price of the cryptocurrency.
At the time of writing, Bitcoin’s price is hovering around $ 21,500, up 9% over the past seven days. Over the past month, the cryptocurrency has lost 10% in value.
The chart below shows the trend in the price of the coin 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 hard just two weeks ago, Bitcoin has seen a strong recovery in recent days as the cryptocurrency regained the $ 21k level.
At present, it is unclear whether this recovery will last or if the currency will see a retracement soon. However, as previously mentioned, if the buy-to-sell ratio is something to rely on, BTC could see a bullish outcome.
Featured image from Jievani Weerasinghe on Unsplash.com, charts from TradingView.com, CryptoQuant.com