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This Bitcoin Indicator with Almost 80% Accuracy Shows That Longing Is Way to Go: CryptoQuant Data

Wed, 06/08/2022 - 11:15
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Arman Shirinyan
Short-term market and on-chain data hint at upcoming recovery
This Bitcoin Indicator with Almost 80% Accuracy Shows That Longing Is Way to Go: CryptoQuant Data
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The majority of on-chain indicators widely used by traders and investors are aimed at the long-term or macro-analysis of the market, but there are still options for those who are using intraday charts and derivatives trading. The "Taker Buy Sell Ratio" is one of those indicators that helps traders to see upcoming short-term market movements.

The indicator simply measures the ratio between the volume of longs and shorts on the market. Such a simple indicator that divides to ratios can give us a hint of the upcoming short-term volatile movements of the market.

Essentially, the metric reflects the intentions of derivatives traders right here and now. One of the main drawbacks is the inability of the metric to predict an unexpected buying or selling volume spike, which happens when large players are willing to buy or sell their holdings.

As the indicator suggests now, bulls are currently controlling the market despite the most recent price spike, which indicates that investors and traders are ready to push the price further.

Though the indicators offer relatively high accuracy, the forecasted price action may not take place since Bitcoin has failed to break through the upper border of the consolidation channel formed since May.

Litecoin (LTC) Gets Delisted from Biggest South Korean Exchanges

Two days ago, Bitcoin failed to break the support line following increased fears on the market after increase regulatory pressure on the world's biggest cryptocurrency exchange, Binance, which caused a massive plunge of the BNB cryptocurrency.

At press time, Bitcoin trades at $30,429 and is going down back to $30,000, which is the lower border of the consolidation channel. Etherum and other alternative cryptocurrencies are also losing about 5% of their value.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.