The Bitcoin market may be facing a potential bearish reversal, as indicated by the latest trend in the Bitcoin taker buy-sell ratio. This ratio measures the volume of taker buys compared to taker sells in the Bitcoin market. When the ratio is above 1, it suggests a bullish sentiment, while values below the threshold indicate a bearish sentiment.
Analysts have observed that the 100-day exponential moving average (EMA) of the taker buy-sell ratio has encountered resistance, potentially signaling a correction in the cryptocurrency. A chart displaying the trend of the 350-day moving average (MA) and the 100-day EMA of the taker buy-sell ratio over the years confirms this pattern. Historically, when the 100-day EMA crosses above the 350-day MA, bullish momentum follows, while the opposite cross predicts a bearish trend.
Currently, the 100-day EMA has crossed above the 350-day MA, leading to a sharp rally in the Bitcoin price to the $37,000 level. However, the 100-day EMA has encountered resistance around the 1-level, suggesting a potential bearish reversal in the coming days if it fails to break above.
The Bitcoin price is currently challenging the $37,000 level, having dipped below it recently. The overall trend in the market remains uncertain.
Author: Keshav Verma
Keshav Verma is a senior writer at NewsBTC, specializing in on-chain analysis. He has been writing about cryptocurrencies for many years and holds a bachelor’s degree in physics. In addition to his passion for the cryptocurrency industry, Keshav enjoys gaming, anime, and football.