The Taker Buy/Sell Ratio shows that the recent rebound from $33,000 to $43,000 has created positive momentum in the market. On the other hand, technical analysis signals a short-term correction. In the midst of market ambiguity, it is usually best to wait and see which way the expected volatility prevails.
Technical Analysis
Long-Term
Bitcoin is still recovering from the 50% crash from its all-time high ( $69K) in November 2021. Recently, the price has rebounded from the $33K level, breaking a major bearish trendline and crossing the psychological resistance at $40K.
This positive momentum continued and the price climbed above the 50-day moving average. However, the bullish wave came to a halt as a bearish crossover took place between the 100- and 200-day moving averages, and also, the static resistance at $46,000 rejected the price. Currently, the 50-day moving average is acting as support, again pushing BTC towards the resistance zone. Therefore, a pullback towards the $39,000 area seems possible if the bulls fail here.
Short-Term
Looking at the 4-hour time frame, it is evident that a massive bearish RSI divergence formed as the price tested the $46,000 area in two misfires, indicating the lack of bullish momentum. The RSI also broke below the 50% mark, showing that the bears are under control and a deeper retracement towards the $39,000 area is possible.
Onchain Analysis
The Taker Buy/Sell Ratio is the proportional balance between buy/sell sentiment in the perpetual futures market. The buying sentiment is stronger when the value is greater than 1, while the selling sentiment is higher when the value is less than 1.
Historically, when the metric hits the green zone, it suggests more buying pressure and it’s a great time to buy BTC. On the other hand, when it comes to the red zone, it shows that there is more selling pressure and the price is likely to enter a correction phase. At present, the metric has reached the green zone. Therefore, this rally is highly likely to continue in the medium term, while the market might see some corrections on the way forward.
