Summary

  • According to CryptoQuant, selling pressure in the Bitcoin derivatives market has intensified to an extreme level.
  • The Binance Bitcoin taker buy-sell ratio fell to 0.85, the lowest in more than a year, indicating seller dominance.
  • Darkfost said the extreme selling pressure could serve as a contrarian signal pointing to short-term bullishness.

Forecast Trend Report by Period

Selling pressure in the Bitcoin derivatives market has reached an extreme level, according to CryptoQuant.

Darkfost, a CryptoQuant contributor, wrote in a report on Nov. 13 that Binance's Bitcoin taker buy-sell ratio had fallen to 0.85, its lowest level in more than a year. That indicates selling pressure is overwhelmingly dominant in the derivatives market.

The taker buy-sell ratio is a measure of buy volume divided by sell volume based on market orders. A reading below 1 means sell volume exceeds buy volume.

Darkfost said such extreme selling pressure could, however, signal a short-term rebound.

Extreme selling pressure typically appears after a price correction has largely run its course, he wrote. Levels like the current one can act as a contrarian signal pointing to short-term strength.

As of 6 p.m., Bitcoin was trading at $68,855, down 6.14% from a day earlier.

Uk Jin