- The Bitcoin Taker Buy Sell Ratio has been below 1 in the past week, indicating bearish pressure, but in the past few days, the signal has flipped and is now showing higher buying pressure.
- Analysts have called for patience, noting that Bitcoin has performed much better than it tends to after the halving, which was on April 19.
Bitcoin was on a bearish trend in the past week, losing 5.82% and hitting a monthly low at $65.175. As Crypto News Flash reported, analysts worry that it would dip further and possibly retest the $60,000 support level amid a rise in mentions of “selling” and “taking profit” on social platforms.
However, a few metrics show that BTC could turn a corner and rebound. One of these is the Taker Buy Sell Ratio, a metric that shows whether there’s higher buying or selling pressure in the market. According to Crypto Quant data, this metric was below 1 for the majority of last week, indicating that there were more sellers than buyers, suppressing the price.
However, the metric has flipped over the past two days and has mainly been above 1, indicating that the buyers are back and that selling pressure has greatly reduced. Some exchanges saw a higher ratio increase, with HTX, formerly Huobi, leading the charts with a sharp spike on Saturday.
Popular crypto analyst Ali Martinez commented:
This spike in buy pressure indicates bullish sentiment, suggesting an upward BTC price movement could be on the horizon.
Other data supporting the bullish sentiment include the cost of mining BTC, which stands at $65,557, marginally higher than the current price. As one analyst noted, the BTC price tends to rise higher than the average mining cost to justify the mining costs.
On the flipside, some metrics remain bearish. Key among these is the exchange netflow which has remained positive over the past week. This means that more BTC is flowing into exchanges than is leaving, creating increased selling pressure on the top crypto and further suppressing its price.
Stay Calm and HODL Bitcoin
BTC trades at $65,350, losing 6% in the past week and dipping by about 2% in the past day amid a broader market drop that saw the overall market cap slide 1.8% to $2.39 trillion.
Despite the lack of momentum, analysts and market leaders believe that Bitcoin still has levels to ascend this year and have urged for patience. Joe McCann, the CEO of crypto investment firm Asymmetric, believes that the runaway volatility that Bitcoin tends to face will fade as more institutional capital flows into the space through ETFs and other mainstream products.
He stated:
Volatility tends to be mispriced now. As more liquidity enters the markets through ETFs and potentially 401Ks, we anticipate volatility to be compressed over time.
Others noted that Bitcoin, despite recent dips, is still performing considerably better than it tends to after halvings. The BTC halving was on April 19, and since then, it has hit a three-month high above $71,300.
Imagine getting shaken out here #Bitcoin $BTC pic.twitter.com/f0xkU5mEgu
— Quinten | 048.eth (@QuintenFrancois) June 11, 2024
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