The derivatives market now has the strongest influence on Bitcoin’s price action, which is why metrics like the Net Taker Buy/Sell Volume or Taker Buy/Sell ratio are essential on-chain indicators to monitor.
These metrics help analyze buying and selling pressure on derivatives platforms, allowing us to identify the dominant market trend.
At present, the Net Taker Volume shows that buying pressure in the futures market has dropped significantly compared to one month ago.
As long as we remain consistently in negative territory, it means that bearish sentiment is strengthening and buying pressure in the futures market continues to decline.
In other words, traders are cautious, and long-side volume is shrinking, no need to spell it out...
What we need to watch now is when this trend reverses, as that would signal renewed bullish sentiment among traders, potentially paving the way for upward momentum.
Written by Darkfost
