Net Taker Volume quantifies the disparity between buying volume and selling volume, which is executed via market orders. It is noteworthy that market orders play a pivotal role in the market. Prior to delving deeper into Net Taker Volume, it is essential to recognize that every order is placed by a participant with a unique market perspective. The psychology of each participant influences their decision to use either a limit or market order.
― A limit order, also referred to as a maker, is an order that specifies a buying or selling amount at a specific price. The market participant must wait until another participant matches the order side of the trade.
― A market order, also known as a taker, is an order that executes a buy or sell at the best available price at the time of execution. Thereby the executing of this order is immediately.
Net Taker Volume for ETH sits at -$418.8M (Daily). This means that taker sellers offloaded 115.4K more $ETH than buyers were willing to absorb. From this indicator, we know that there is some sort of communication in it. Market participants who prioritized execution speed over price at this point, showing a serious bearish signal.
Written by maartunn