Bitcoin has rebounded, with the price moving towards $125,000 as demand increases, indicating a boost in liquidity and confidence from both spot and institutional traders.
Key Insights:
- Bitcoin’s net taker volume has shifted from highly bearish to neutral levels.
- On-chain and market trends show strategic profit-taking rather than panic sales.
- Recent data from Binance illustrates that Bitcoin is experiencing its best buying momentum since July.
The price of Bitcoin (BTC) has stabilized over $120,000 after a sharp drop from its previous all-time high. As buying interest resurges, the markets for both spot and derivatives are gravitating towards a more stable situation, establishing a solid ground for potential upward movement.
Bitcoin four-hour chart. Source: Cointelegraph/TradingView
According to CryptoQuant, the medium-term trend in derivatives has changed substantially, with the net taker volume rebounding from an extreme bearish state of -$400 million to a neutral stance, suggesting a meaningful transition in buying and selling dynamics.
Bitcoin NetTaker Volumes. Source: CryptoQuant
A similar pattern was observed during Bitcoin’s correction in April, ahead of a rise of 51% over 13 weeks. Analysts warned, however, that a sudden rise into notably positive territory might signal an overactive market in case buying ramps up too swiftly.
Joao Wedson emphasized that ongoing metrics reflect a positive buying/selling pressure delta. He stated, “Metrics like this can take you to a whole new level, significantly increasing your decision-making accuracy.”
Buy/Sell pressure delta for Bitcoin. Source: Joao Wedson/X
In contrast, Swissblock analytics mentioned that while some profit-taking has resulted since Bitcoin reached its zenith near $126,000, the trend remains controlled instead of panic-driven.
The analytics forecast that maintaining levels between $120,000 and $121,000 will affirm a “healthy cooling phase,” paving the way for refreshed demand and the next upward movement.
For more insights, read the related articles linked throughout this piece.
