Bitcoin’s ‘buyer-to-seller ratio’ soars, indicating renewed bullish sentiment.

Bitcoin's buyer-to-seller ratio surges, signaling renewed bullish sentiment.

Author: Omkar Godbole, CoinDesk; Translation: Song Xue, LianGuai

The “receiver buy-to-sell ratio” of Bitcoin (BTC) has recently surged on several cryptocurrency exchanges, indicating a resurgence of bullish sentiment around $29,000.

According to data tracked by South Korean blockchain analysis firm CryptoQuant, this ratio on Bybit soared to 1.36 on August 1, reaching the highest level in at least a year. A value above 1 indicates that the buying volume of receivers exceeds the selling volume, which is a sign of bullish trading in the market. Bybit is the third-largest cryptocurrency perpetual futures exchange globally, based on open interest and trading volume.

On Tuesday, this ratio hit a three-and-a-half-month high of 1.17 on the cryptocurrency exchange BitMEX and touched a six-month high of 1.31 on July 30 on another trading platform, OKX.

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The buy-to-sell ratio of takers is the ratio of the buying volume of takers to the selling volume in the perpetual contract market. Perpetual swaps are derivative contracts similar to futures contracts, with no expiration date, allowing traders to speculate on the value of the underlying asset.

Market receivers are entities that place buy or sell security orders immediately and extract liquidity from the order book. Trading firms and individual investors belong to the category of receivers. Meanwhile, entities engaged in creating liquidity in the order book are market makers.

(Receiver buy-to-sell ratio on BitMEX (CryptoQuant))

This data explains why bears have failed to keep Bitcoin below $29,000 recently.

Since July, Bitcoin has formed multiple daily candlesticks with long lower shadows, indicating that the trading price briefly fell below $29,000. On Tuesday, the price rose by over 2%, breaking the $30,000 mark.

Ki Young Ju, CEO of CryptoQuant, stated that the surge in the receiver buy-to-sell ratio on low-volume exchanges like BitMEX is often a sign of whales or large investors increasing their purchases.

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