One analyst has pointed out how some suspicious bitcoin buying activity occurred on Bybit and Deribit in the lead-up to yesterday’s surge.
bitcoin Taker Buy/Sell Ratio Saw Extraordinary Spikes on Bybit and Deribit Yesterday
in a new mail In
The “buyer’s bid-sell ratio” here refers to an indicator that tracks the relationship between the buyer’s buying and selling volumes of bitcoin on any given exchange (or group of platforms).
When the value of this metric is greater than 1, it means that the buyer’s purchase volume is greater than the current sale volume. This trend suggests that investors are willing to pay more to buy the asset and therefore the majority share a bullish sentiment.
On the other hand, a value below the threshold implies that there is an active bearish mentality on the exchange, as traders are willing to sell the asset at a lower price at the moment.
Now, here is a chart showing the trend in the 24-day simple moving average (SMA) bitcoin buyers bid-sell ratio over the past few days for four exchanges: Binance, OKX, Bybit, and Deribit.
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/10/Analyst-Points-Out-Strange-Bitcoin-Activity-on-Bybit-and-Deribit.jpeg" alt="bitcoin Taker Buy and Sell Ratio” width=”4096″ height=”2580″ loading=”lazy”/>
Looks like the value of the metric was quite high on the bottom two platforms | Source: @jjcmoreno on X
Yesterday, bitcoin experienced a very sharp sudden rally when fake news emerged that the iShares btc Spot ETF had been approved by the US SEC. However, this surge came back just as dramatically as it had when the market quickly turned upside down. He realized that the rumor was unfounded.
From the chart, you can see that these four exchanges experienced spikes in the buyers’ buy-sell ratio in the hours leading up to this rally. However, the spikes on Binance and OKX were quite normal levels, as spikes of similar scales had also occurred in the previous days.
However, in the case of Bybit and Deribit, the 24-day SMA of the ratio had reached peaks of 41 and 98, respectively, which are extremely high levels. For comparison, the indicator only reached 1.8 on Binance and 6.3 on OKX.
This would suggest that a really high bitcoin buying volume was seen on Bybit and Deribit, unlike what was seen on other exchanges in the sector.
It’s unclear what this pattern means, but some users of these platforms may have already been warned in advance about the fake ad.
btc Price
Regardless of the rapid rally and fall, bitcoin has enjoyed some upward momentum over the past few days as the cryptocurrency’s value has now risen towards the $28,500 level.
<img decoding="async" class="alignnone size-medium aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/10/Analyst-Points-Out-Strange-Bitcoin-Activity-on-Bybit-and-Deribit" alt="bitcoin price chart” width=”1534″ height=”869″ loading=”lazy”/>
The asset has been going up during the past few days | Source: BTCUSD on TradingView
Featured Image from iStock.com, Charts from TradingView.com, CryptoQuant.com
