The market is showing early signs of a potential downside reversal, as key derivatives metrics weaken in tandem.
🔻 Decline in Taker Activity: Across centralized exchanges (CEXs), both taker buy and taker short volumes have dropped significantly. This indicates a cooling in market order aggressiveness on both sides, often a precursor to reduced short-term momentum and increased uncertainty.
📉 Bearish Shift in Buy/Sell Ratio:
1) 30-day change: -29.3%
2) 7-day change: -34.7%
The sharp decline in the Taker Buy/Sell Ratio confirms a retreat in bullish conviction, suggesting sellers are beginning to dominate spot order flow.
⚠️ Ratio Trend and Volatility Spike:
The 7-day moving average of the Buy/Sell Ratio has now declined to 1.2, and appears to be heading toward the critical 1.0 threshold. Simultaneously, 7-day price volatility is spiking, a typical signal of market inflection zones.
📌 Implication:
Current data points to a turning point in market sentiment. With buyer exhaustion growing and volatility accelerating, the likelihood of a short-term correction increases. Price action may test support near the 105K level, if bearish pressure intensifies.
Written by Crazzyblockk
