Cross-chain data shows that the share of Bitcoin buyers’ selling has risen to the highest level not seen in nearly two years.
Bitcoin trading buy/sell ratio has been on the rise in recent days
As pointed out by an analyst at CryptoQuant MailThe buy/sell ratio is now at its highest value in 636 days.
The “Buy-Sell Ratio”, as its name suggests, is an indicator that measures the ratio between a trader’s buying volumes and a trader’s selling volumes.
When the value of this scale is greater than one, it means that the long volume is currently overshadowing the short volume. This trend indicates that the uptrend is currently the most dominant in the market.
On the other hand, a ratio that is lower than this limit means that the trader’s selling volume is higher at the moment. This trend naturally indicates that the market is carrying a majority bearish sentiment.
Now, here’s a chart showing the trend in the percentage of Bitcoin buyers’ selling over the past two years:
The value of the metric seems to have surged up in recent days | Source: CryptoQuant
As you can see in the chart above, the percentage of Bitcoin buyers selling has noticed a sudden rise in their value recently.
During this sudden increase, the index reached a high of 1.14, a value not seen in about 636 days.
Since these latter values are above the “1” mark, the buying volumes that the buyer is currently making are the most dominant in the market.
Incidentally, these spikes were last seen before the bullish rush of 2021 began. If a similar trend follows this time as well, the current Bitcoin buy-sell ratio values could prove bullish relative to the cryptocurrency price.
At the time of writing, the price of Bitcoin is hovering around $21.5K, up 9% in the past seven days. Over the past month, the cryptocurrency has lost 10% of its value.
The chart below shows the currency price trend over the past five days.
Looks like the value of the crypto has observed upwards momentum during the past couple of days | Source: BTCUSD on TradingView
After dropping sharply just two weeks ago, Bitcoin has seen some sharp recovery in the past few days as the crypto reclaimed the $21,000 level.
Currently, it is unclear if this recovery will continue, or if the currency will see a rebound soon. However, as mentioned earlier, if a trader’s buying percentage is anything to go by, BTC could see a bullish result.
Featured image from Jievani Weerasinghe on Unsplash.com, charts from TradingView.com, CryptoQuant.com