As the Bitcoin price fluctuates, on-chain data shows that both Bitcoin taker purchase and taker sale volumes have seen large spikes in the last day.
Prices for Bitcoin taker buy and taker sell volumes have reached high levels
An analyst pointed out in a CryptoQuant posting that yesterday’s BTC taker volume for both taker buys and taker sales was more than $1.8billion.
The “taker buy/sell volume” is an indicator that measures the Bitcoin long and short volumes on derivatives exchanges. This metric differentiates these volumes by determining whether the transaction occurred at the ask (taker buy), or the bid (taker sale).
These volumes indicate that the exchanges receive a lot of orders at this time. This trend is usually associated with higher volatility in crypto’s price.
However, low prices can mean that the market is quiet at the moment. This may lead to slower BTC price movements.
Below is a chart that illustrates the recent trend in Bitcoin taker volume buy and sell transactions.
These metrics' values seem to have seen large spikes in the last day. Source: CryptoQuant| Source: CryptoQuant
As you can see in the above graph, the Bitcoin taker buy and taker seller volumes have seen quite sharp increases recently.
These spikes came just as Federal Reserve Chairman Jerome Powell gave an interest rate warning yesterday.
It took less than an hour for the taker volume to hit $1.8 billion. Meanwhile, it rose at an even faster pace of $1.92 billion.
After the increase in market activity, Bitcoin’s value fell below $20k. Currently, it’s unclear whether this was it for the volatility or if the coin will continue to see more sharp price action in the near future.
BTC Prices
At the time of writing, Bitcoin’s price floats around $19.8k, down 6% in the last seven days. In the past month, crypto lost 6%.
The chart below shows how the currency’s price has changed over the course of five days.
Source: BTCUSD on TradingView| Source: BTCUSD on TradingView
Bitcoin has fallen below $20k for the first-time since July, after moving mostly in the opposite direction over the last week.
Featured image by Kanchanara at Unsplash.com. Charts from TradingView.com and CryptoQuant.com.