Bitcoin exchange netflow chart. Source: CryptoQuant
“Volumes are thin. That means the market can have huge moves up or down easily,” Samson Mow, CEO of Blockstream, commented on the status quo:
“Given that we had a big move down already, and everyone is buying like no tomorrow, Id say the next move is up.”
CryptoQuant tracks a total of 21 exchanges for its order book data. Last week, separate data focused on what one analyst described as a “crazy” imbalance between bids and asks, indicating that bears were finally begining to tire of selling.
Buyers get bolder
Spot buyers were previously the main cohort missing from interest in BTC at current price levels.
Related: Bitcoin returns to $42K as bets start favoring ‘short squeeze’ higher for BTC
As Cointelegraph reported, miners continue to add to their reserves at an increasing pace this year, with long-term holders steadfast in their resolve not to sell.
Highlighting a bullish trend in the Bitcoin taker buy/sell ratio, CryptoQuant contributor IT Tech revealed a similar situation unfolding on derivatives markets.
The metric refers to the ratio of buy and sell volumes from takers on derivatives platforms. A value below 1 implies bearish sentiment, and while that is currently the case, the direction is up.
“If will cross 1 then we should have Bullish sentiment again and it chance to price trend reversal,” IT Tech summarized in one of CryptoQuant's “Quicktake” posts Wednesday.
“Personally I am preparing to final bull run which will come sooner or later.”Bitcoin taker buy/ sell ratio vs. BTC/USD anotated chart (screenshot). Source: CryptoQuant
