Recent analysis shows Bitcoin's Taker Buy/Sell Ratio has dropped to a level not seen for over seven years, raising concerns among analysts.
Taker Buy/Sell Ratio Hits Multi-Year Low
Data from the CryptoQuant platform reveals that the 30-day moving average of Bitcoin's Taker Buy/Sell Ratio has fallen below 0.98, marking the lowest level since May 2018. This is particularly concerning, as the ratio is now below levels seen in November 2021 when BTC reached its all-time high above $69,000.
Risk of Further Market Correction
A long-term examination of the Taker Buy/Sell Ratio suggests that, despite Bitcoin's price growth, the buy-to-sell ratio has continued to decline. This indicates weak buying momentum, increasing the risk of a significant price correction in the short term, as sell-side orders outnumber buy-side orders.
Predictions for Bitcoin's Price Movement
While CryptoQuant predicts a potential significant correction in the Bitcoin market, other analysts suggest the bullish cycle may not be completed. Expectations of a final rally are forecasted between late October and mid-November before a likely transition to a bear market.
The drop in the Taker Buy/Sell Ratio serves as a warning of potential selling pressure in Bitcoin's market. However, indications of an upcoming rally suggest a careful interpretation of current signals is necessary.
