Bitcoin’s Net Taker Volume Becomes Positive: Are We Headed for a New Record High?

Bitcoin is showing signs of gradual recovery, currently valued at $95,409 after a 1.7% increase over the last day. Over the past two weeks, BTC has risen nearly 15%, steadily bouncing back from a recent downturn.

Although the momentum seems moderate compared to previous surges, market data indicates that significant structural changes might be taking place that could affect the next major movement.

Currently, multiple indicators reflect a positive shift in sentiment, especially within the derivatives market, which has become the primary driver of Bitcoin’s trading volume.

Recent insights from analysts show a noticeable change in trading dynamics, suggesting that long positions are becoming stronger relative to shorts. Additionally, updated cycle models indicate that Bitcoin may have the potential for further upward movement, drawing parallels to the market conditions observed in 2017.

Positive Shift in Bitcoin Net Taker Volume: Implications

Recent analysis indicates that the 30-day moving average of Bitcoin’s Net Taker Volume has shifted definitively into positive territory.

This metric evaluates the relative sizes of long and short positions in the derivatives market over time. A positive figure indicates that buying pressure surpasses selling pressure, while a negative figure signifies the opposite.

Experts have noted that the derivatives markets now constitute about 90% of total Bitcoin trading volume, overshadowing spot and ETF trading. Consequently, changes in sentiment within derivatives often precede larger price movements.

The recent positivity in Net Taker Volume suggests that speculative traders are aligning themselves for further price increases. If this trend continues, it could bolster Bitcoin’s recent gains and pave the way for additional price exploration.

Revised Cycle Models Indicate Continued Upswing

Another analysis offers a perspective on Bitcoin’s long-term trend. Utilizing enhanced cycle models that rely on market capitalization data, it appears traditional cycle indicators have been slow to capture the current recovery.

To better gauge these changes, adjustments were made to the model’s time series to identify earlier trends in market behavior. What was traditionally viewed as a “bear market” zone is now seen as a buying opportunity within a sustained upward cycle.

The current market landscape, based on these insights, appears more similar to the latter phases of the 2017 bull market rather than the early onset of a downturn. If this comparison holds true, Bitcoin might still possess considerable upward potential before a major correction occurs.