Bitcoin buying pressure continues to build above $120K

The key takeaways

• Bitcoin’s net taker volumes has recovered to neutral from an extremely bearish level.

• Market data and Onchain indicate that profit taking is controlled, but not panic buying.

• Binance’s data indicates that Bitcoin is experiencing its highest buying activity since July.

BitcoinBTC) price stabilized above $120,000 after sharply correcting from its all-time high on Tuesday. The spot and derivatives market appear to be moving towards a more balanced condition as buyers return. This will provide a better foundation for the subsequent move up.

As per CryptoQuant, The medium-term trends in the derivatives market have changed significantly. The net taker volume, which compares sell and buy orders, has recovered from an extreme bearish reading of –$400 million to a neutral level, signaling “a true shift in dominance between buying and selling pressure.” 

Similar transitions occurred in April’s Bitcoin correction. This led to a 51% increase of the price over 13 weeks. Analysts cautioned, however, that a sudden swing to overwhelmingly positive territory may indicate an overheated stock market if the buying pressure increases too rapidly.

JoaoWedson, Alphractal’s CEO is a similar example. noted That the delta of buy/sell price pressure remained positive. “Metrics like this can take you to a whole new level, significantly increasing your decision-making accuracy,” Wedson stressed that in the past months, buying at a time when sentiment seems to be weakest paid off.

Swissblock Analytics highlighted While short-term profits have been taken following Bitcoin’s record high of $126,000, the price remained unchanged. “controlled, not panic-driven.”

The analytics platform said that holding above $120,000–$121,000 would confirm a “healthy cooling phase,” Set the stage to re-demand and the next upward movement.

Related: $11B Bitcoin whale returns with $360M BTC transfer after 2 months

Buy more than you did in July “real liquidity”

Binance data reinforced Narrative of sustained momentum in buying. Bitcoin has increased in price from $117,000 to 124,000 since early October. The net buying pressure, or vol_delta, was over $500 million several times, which means that buy volume exceeded sell volume.

The Z-Score (Z-Score) rose from 0.79 to 0.23. This indicates that daily purchases were above the average.

This is more than a temporary enthusiasm. It signals a revival of whale and institutional participation. The daily trading volume has reached its highest level since July. This suggests that Bitcoin is being supported by real liquidity and not just speculative speculation.

Despite some sessions showing a slight dip in the volume delta over recent days, other indicators like steady volatility and accumulation by mid-sized investors suggest a robust confidence on the market.

This was in stark contrast with the weak performance of September and confirmed the belief that any pullback towards $120,000 could serve as a chance for strategic accumulation, rather than a start to a greater reversal.

Related: Bitcoin has room for growth: Why analysts say $300K is still in play

The article is not intended to provide investment advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.