On-chain data shows that the bitcoin taker’s buying and selling volumes both saw major spikes over the past day as the price experienced volatility.
Bitcoin Taker Buy and Taker Sell volume surged to high levels
As one analyst noted in a CryptoQuant post, both the BTC taker’s buy and sell volume hit more than $1.8 billion yesterday.
Taker Buy/Sell Volume is an indicator that measures bitcoin long and short volume on futures exchanges. The metric distinguishes between these two volumes based on whether the transaction is at the ask price (taker buy) or the bid price (taker sell).
When these volumes are high, it means that the exchanges are currently receiving a large number of orders. This type of trend usually leads to higher volatility in the crypto price.
On the other hand, low readings suggest that there is little activity in the market right now, which may lead to more stale price action for BTC.
Now here’s a chart showing the trend in buy and sell volumes by bitcoin takers over the past few weeks:
The values of the two metrics seem to have shown big spikes over the past day | Source: CryptoQuant
As you can see in the chart above, Bitcoin Taker Buy and Taker Seller volumes have increased quite a bit lately.
These spikes came after Federal Reserve Chair Jerome Powell issued a rate warning in a speech yesterday.
Taker buy volume took just an hour to reach $1.8 billion, while taker sell volume soared even higher at around $1.92 billion.
The value of bitcoin declined below the $20,000 mark some time after this spike in market activity. Currently, it is unclear if this was due to volatility or if the coin will continue to see stronger price movements in the near future.
BTC price
At the time of writing, Bitcoin’s price is hovering around $19.8k, down 6% over the past seven days. Over the past month, the crypto has lost 6% in value.
The chart below shows the evolution of the coin’s price over the last five days.
It looks like the value of the crypto has declined sharply in the last twenty-four hours | Source: BTCUSD on TradingView
After trading sideways for most of the past week, Bitcoin appears to have broken out of the range today as the cryptocurrency slipped below $20,000 for the first time since mid-July.
Featured image by Kanchanara on Unsplash.com, charts by TradingView.com, CryptoQuant.com
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