As BTC trades above $100,000, the Bitcoin market is dominated by aggressive buyers, an indicator that suggests bulls are in control and the next market trend seems clear.
Is Bitcoin starting a bull market?
In a recent CryptoQuant Quicktake post, on-chain analyst Crazzyblockk noted that Bitcoin’s (BTC) Binance Taker Buy-Sell Ratio climbed to 1.131, suggesting that bullish momentum is building.
For beginners, the Binance taker-buyer ratio reflects the power comparison between Bitcoin buyers and sellers on Binance. When the ratio is greater than 1, buyers are dominant (bullish); when it is less than 1, sellers are dominant (bearish). Currently, the 7-day average of the ratio is 1.045 and is on an upward trend. The 30-day increase has soared by 12.1%, indicating continued buying interest and strong upward momentum.
However, not all indicators are showing positive signals. The ratio's Z-score (a statistical measure of how far the current value deviates from the mean) has reached 2.45, suggesting that the market may be approaching overbought territory.
Historically, ratios above 1.1 and high Z-scores have typically led to pullbacks before resuming the uptrend. Crazzyblockk added that Binance data offers multiple advantages.
For example, deep liquidity in the order book accurately reflects taker behavior. In addition, high trading volume also increases its reliability as an indicator.
Strategists' views
In terms of strategy, analysts note that if the ratio remains above 1.1 while BTC remains above $99,000, it would be a bullish sign. Conversely, if the ratio drops below 1.05, it could indicate increased profit-taking and a possible pullback in the short term.
Meanwhile, well-known analyst Rekt Capital shared a weekly Bitcoin chart showing that BTC is on the verge of breaking out of its long-term downtrend since December 2024. According to the analyst, BTC must stay above $98,700 to confirm this breakout and prepare for an attack on the next resistance level of $104,500.
Similarly, analyst Ali Martinez pointed out that $101,673 is an important resistance area, as nearly 81,910 BTC have accumulated at this level. Martinez warned that failure to break through this level could lead to a period of consolidation.
BTC must hold several key support levels to avoid another major drop. As Martinez noted in another X post, BTC must not fall below the $93,198 support level or it could fall all the way to $83,444.
On a positive note, the number of BTC wallet addresses depositing funds to exchanges recently fell to an 8-year low, a bullish sign that could further push BTC closer to its all-time highs.
As of press time, BTC is trading at $102,500, having broken out of its long-term downward trend since December 2024. Its next move is also worth keeping an eye on.
Conclusion:
In summary, analysts believe that although there is a certain risk of overbought in the market, the overall trend is still positive. In addition, Bitcoin has broken through the key area of the long-term downward trend and is expected to hit higher resistance levels in the future.
However, the market is always full of uncertainty, and investors should pay attention to potential callback risks while chasing the rise. In particular, when the buy-sell ratio drops below 1.05, it may indicate an increase in profit-taking and the possibility of a short-term callback.
What do you think? Do you think this wave of Bitcoin gains will continue? Leave your opinions and views in the comments section!
