Data shows the Bitcoin Net Taker Volume on Binance has taken one of its most negative values in recent years as the cryptocurrency’s price has plunged.
Bitcoin Binance Net Taker Volume Has Fallen Deep Into Red ZoneWhen the value of this metric is positive, it means the taker buy volume outweighs the taker sell volume on the platform. Such a trend implies a bullish sentiment is shared by the majority of the futures traders.
On the other hand, the indicator being under the zero mark suggests a bearish mentality is dominating the exchange as taker sell volume is outpacing the taker buy volume.
Now, here is the chart shared by Maartunn that shows the trend in the 7-hour moving average (MA) Bitcoin Net Taker Volume for Binance over the last couple of years:
“This is the 3rd largest sell-off by Sell Taker Volume Dominance in the last 2 years,” noted the analyst. The two spikes in this window that were larger in magnitude came in October as the asset’s price crashed following its all-time high (ATH) above $126,000.
In the past, Bitcoin has often tended to move in the direction that goes contrary to the expectations of the majority. As such, it only remains to be seen how the coin will develop in the near future, given this dominance of short sentiment. “At some point, the best risk-reward flips long,” said Maartunn. “We’re getting close.”
$300 million of the liquidations still involved bearish bets as Bitcoin and other cryptocurrencies have seen some rebound in this window.
BTC PriceBitcoin briefly dipped all the way under $75,000 on Sunday, but the asset has since bounced a bit as it’s now trading around $78,900.
