Bitcoin’s (BTC) taker buy-sell ratio recently surged on several crypto exchanges, signaling a renewed bullish sentiment around $29,000. According to South Korea-based blockchain analytics firm CryptoQuant, the ratio surged to 1.36 on Aug. 1 on ByBit, reaching the highest in at least a year. Values above 1 indicate that takers’ buy volume is outpacing the sell volume, a sign of bullish trading in the market. On BitMEX, the ratio hit a three-and-a-half-month high of 1.17 on Tuesday, while on OKX it reached a six-month high of 1.31 on July 30.
The taker buy-sell ratio is the ratio of buy volume divided by the sell volume of takers in perpetual swap markets. Perpetual swaps are futures-like derivative contracts with no expiry, allowing traders to speculate on the value of the underlying asset. Market takers are entities that put orders to buy or sell securities immediately, taking out liquidity from the order book. Trading firms and individual investors fall into the category of takers, while entities in the business of creating order book liquidity are market makers.
CryptoQuant’s CEO Ki Young Ju noted that a spike in taker buy-sell ratio on low-volume exchanges like BitMEX is often a sign of increased buying by whales or large investors. Bitcoin whales opened giga longs at $29,000, Ju tweeted Tuesday, referring the taker buy-sell ratio. This data explains the recent bear failure to keep bitcoin below $29,000. Since July, bitcoin has chalked out multiple daily candles with long lower wicks, indicating brief periods of sub-$29,000 trading. Prices jumped over 2% on Tuesday, topping the $30,000 mark for the first time.
The recent surge in Bitcoin’s taker buy-sell ratio is a sign of renewed bullish sentiment in the market, with the ratio reaching its highest in at least a year on ByBit. CryptoQuant’s CEO Ki Young Ju noted that a spike in the ratio on low-volume exchanges like BitMEX is often a sign of increased buying by whales or large investors. This data explains the recent bear failure to keep bitcoin below $29,000, with prices jumping over 2% on Tuesday and topping the $30,000 mark for the first time.