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Bitcoin price has slowed somewhat, struggling to reach the highly coveted $100,000 level, after an intense bull run all week. However, investors seem to be undeterred by the slow price movement of the leading cryptocurrency in the past few days.
The buy/sell ratio of Bitcoin traders is rising – which affects the price
In a November 23 post on the X platform, prominent cryptocurrency analyst Ali Martinez said subscriber Traders have taken to loading their bags with Bitcoin in recent days. This on-chain observation is based on the “Recipient Buy/Sell Ratio,” which tracks how much a recipient buys and how much a recipient sells for a given cryptocurrency.
A value greater than one for the receiver buy/sell ratio indicates that the receiver’s buying volume is higher than the receiver’s selling volume. This is usually considered a bullish signal, indicating investors are willing to pay a higher price for a particular cryptocurrency (Bitcoin, in this case).
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In contrast, when the value of the measure is less than 1, it means that more sellers want to sell their assets at a lower price. Typically, this indicates bearish sentiment among investors, as selling pressure overwhelms buying pressure in the given market.
Martinez highlighted in his post on As shown in the chart below, the metric rose to a value of over 28 on Binance, the world’s largest exchange.
Likewise, the buy/sell ratio of Bitcoin recipients rose well above the threshold of 1, indicating increasing buying pressure in the open market. This level of intense buying activity could ensure that the leading cryptocurrency continues its surge towards the $100,000 level.
As of this writing, Bitcoin’s price is around $97,800, reflecting a 1.1% decline over the past 24 hours. However, the performance of the major cryptocurrency on the weekly time frame is still impressive. According to CoinGecko data, Bitcoin has risen by approximately 8% in the past week.
Who buys?
In another post on the X platform, Martinez said: open A remarkable group of large investors (also known as whales) have been active in the Bitcoin market in the past few days. This category of whales participating here are those that own between 100 to 1000 coins.
According to data from Santiment, whales have purchased more than 40,000 BTC (equivalent to about $3.96 billion) in the past four days. Given its impact on market dynamics, this buying activity from Bitcoin whales could be bullish for the price.
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Featured image from iStock, chart from TradingView
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