The relevant indicator here is the BTC Net Taker Volume, which tracks which of the buyers or sellers is more aggressive in the market. The metric does so by measuring the net difference between buy and sell market orders executed on derivatives exchanges.
Before this recent shift, the net taker volume had fallen into deep negative territory, reaching a bottom of about –$489 million. Due to the lack of demand in the market over that period, the price of BTC continued to fall as selling pressure grew. However, this market scenario has shifted, as of Friday, January 16th.
Historically, an increasing buying interest among participants of the futures market typically signals rising bullish sentiment. In turn, upward price pressure increases through leverage, leading to amplified short-term price moves if sustained.
Bitcoin Market OutlookTill then, market participants are advised to deal cautiously until it is confirmed that the derivatives-sponsored momentum is sustainable for the flagship cryptocurrency’s growth.
As of press time, the price of Bitcoin stands at about $95,357, with insignificant movement over the past day.
Featured image from iStock, chart from TradingView
