bitcoin has climbed back above the $70,000 level over the past day despite the asset's negative net taker volume.
bitcoin net taker volume has seen large negative spikes recently
As explained by CryptoQuant Netherlands community manager Maartunn in a twitter.com/JA_Maartun/status/1778150977092395167″ target=”_blank” rel=”nofollow”>mail On x, sales spikes of a significantly larger scale than before have recently appeared in bitcoin Net Taker volume.
“Net Taker Volume” is an indicator that tracks the difference between taker buying and selling volumes of bitcoin in perpetual swaps. How can sales and purchase volumes be different? As CryptoQuant explains in its data guide:
This concept is often confusing because each transaction requires both a buyer and a seller of the given underlying asset. However, depending on whether the order taker is a buyer or a seller (whether a transaction occurs at the ask price or at the offer price), a distinction can be made between long volume and seller volume.
When the value of this metric is positive, it means that the buyer's buying volume is exceeding the buyer's selling volume at the moment. This trend implies that the majority share a bullish sentiment.
On the other hand, the negative indicator suggests that more sellers are willing to sell the coin at a lower price, a sign that the bearish mentality is dominant.
Now, here's a chart showing the trend in net bitcoin taker volume over the past year:
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/04/Bitcoin-Breaks-Above-70000-Again-Despite-Negative-Buyer-Volume.jpeg" alt="Net volume of bitcoin takers” width=”2048″ height=”1290″ loading=”lazy”/>
The value of the metric seems to have been quite red in recent days | Source: twitter.com/JA_Maartun/status/1778150977092395167/photo/1" target="_blank" rel="nofollow">@JA_Maartun on x
As the chart above shows, bitcoin's net buyer volume has recently recorded a strong negative spike, implying that buyers' selling volume has been greater than buyers' purchasing volume.
Net taker volume has been seeing big red spikes for a while, as the analyst highlighted on the chart. “bitcoin is getting hit massively, with sales spikes in Net Taker Volume significantly stronger than before,” says Maartunn.
Interestingly, despite this bearish market sentiment, the price of bitcoin has managed to hold up relatively well. Obviously, the coin's bullish momentum has faded while these negative spikes in net taker volume have taken hold, but the fact that btc has shown strength against any sustained decline remains impressive.
One pattern that is perhaps visible on the chart is that although Net Taker Volume has continued to see red spikes recently, its scale has gradually decreased.
Therefore, if this trend continues, the bearish mentality may eventually end and buying pressure will take over bitcoin. Now it remains to be seen how the indicator evolves shortly.
btc Price
bitcoin fell below $68,000 yesterday, but today, the asset has already recovered and is now trading around $70,800.
x/ACwZfdfT/” alt=”bitcoin price chart” width=”1534″ height=”854″/>
Looks like the price of the coin has made some recovery over the past 24 hours | Source: BTCUSD on TradingView
Featured image by Jievani Weerasinghe on Unsplash.com, CryptoQuant.com, TradingView.com chart
Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.
<script async src="//platform.twitter.com/widgets.js” charset=”utf-8″>
