Taker Buy/Sell Ratio on Binance: Needs Stability to Rally
Takers – those who match available buy and sell orders on the order book – are a crucial factor in determining price momentum. Data regarding their behavior reflects the balance of supply and demand and market sentiment in the short term. On Binance, the Taker Buy/Sell Momentum Signal is used to measure the inclination towards buying or selling, suggesting the market's upward or downward trend.
After the sharp drop of Bitcoin, data shows that sellers are clearly dominating. The fear sentiment is increasing selling pressure, while trading volume in futures contracts has significantly decreased. This indicates that the market is in a defensive state and lacks new capital inflow.
However, the decline in the average weekly Taker Buy/Sell ratio and the tightening price volatility suggest that the market may enter a short-term stabilization phase. If this quiet accumulation process continues, allowing fear to gradually subside and sellers to exhaust, a sustainable recovery of Bitcoin could form soon.