Bitcoin’s Net Taker Volume on Binance showed contrasting periods of strong selling against buying activities correlating them with BTC ($97,551.45) price action.
Over the weekend, spikes in negative taker volume frequently indicated increased selling pressure.
Subsequent periods often were leading to reversals or price recoveries, reflecting BTC’s resilient trading dynamics.
These substantial Bitcoin sell-offs were associated price dips were observed in late November and late December.
These were followed by recoveries as market sentiment shifted.
The pattern suggested that while sharp declines in BTC price can stir market anxiety. They also set the stage for potential rebounds.
Looking forward, the recent surge in sell volume, if it follows historical patterns, may precede a buying opportunity.
Investors might see the lower prices as attractive entry points, leading to a rally.
Conversely, if the selling pressure does not abate, it could indicate a deeper market correction rather than a temporary dip.
This would potentially drive prices down further before stability resumes.
The scenario would suggest a continued bearish trend, challenging potential for immediate recovery.
Bid-Ask Ratio, Retail Long% & Short Liquidation Levels Signals
Over a two-week period, the Bid-Ask Ratio at 5% depth, Retail Long Percentages, and Short Liquidation Levels converge, offering a powerful signal of potential bullish momentum.
During this period, each instance where these indicators aligned closely with BTC price showing significant upward movement shortly thereafter.
This pattern indicated how the confluence of high bid-ask ratios, increased retail long positions.
A spike in short liquidations can precede an uptrend, confirming trader anticipation of a rally.
These indicators peaking together around January 28th, followed by a robust price increase, affirming the predictive utility of these combined signals.
Historically, the confluence signaled buying opportunities, which were validated as the price climbed.
If these indicators continue to align similarly, another uptick is plausible. Conversely, should these metrics diverge, it might suggest a weakening of the current bullish signal.
This could potentially lead to price stabilization or a downturn if new adverse factors emerge.
It emphasizes the need for continuous monitoring for any shifts that could precede changes in market direction.
BTC Price Retail vs Large Investors Activity
The holding patterns of Bitcoin by retail and large investors over a specified period, showed a diverging trend in investment behaviors.
The retail holdings showed a steady decrease from around 1.74 Million BTC down to 1.68 Million BTC by January 2025.
In contrast, large investor holdings have been on the rise. They went from approximately 16.1 Million to 16.3 Million in the same timeframe.
The BTC price experienced fluctuations but largely trended downwards, suggesting that despite large investor accumulation, market prices were pressured by broader selling among retail holders.
This pattern suggested that large investors tend to accumulate during periods of lower prices, likely capitalizing on the panic selling from retail investors to increase their holdings at lower costs.
If large investors continue this trend of accumulation, it might indicate a forthcoming bullish phase for BTC price as their sustained buying could eventually outweigh selling pressure, leading to a recovery.
Conversely, if retail selling intensifies without enough large investor buying to counterbalance, we might see further declines in Bitcoin’s price.
The post How BTC Price Could Move After a Rough Weekend? appeared first on The Coin Republic.
