The key take-aways
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Bitcoin’s Net Taker Volume has recovered from extreme bearish levels to neutral.
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Market data and Onchain indicate that profit taking is controlled, but not panic buying.
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Data from Binance shows Bitcoin has seen its strongest purchasing momentum since July.
BitcoinBTCAfter Tuesday’s sharp decline, the price stabilised above $120,000. Both spot and futures markets are convergent as more buyers enter the market, providing stronger support for a next upward move.
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.”
A similar shift occurred when Bitcoin corrected in April, which paved the path for an uptrend that increased by 51% over the next 13 weeks. Analysts warned that a sharp swing in the direction of a strong positive could indicate a market overheated if purchasing pressure accelerates quickly.
Joao Wentson, CEO of Alphractal noted That the delta of buy-sell pressure remained positive. “Metrics like this can take you to a whole new level, significantly increasing your decision-making accuracy,” Wedson emphasized that disciplined purchasing when sentiment seems weakest, has consistently paidoff in recent month.
Swissblock Analytics highlighted Although short-term profit taking has been observed following Bitcoin’s high, near 126,000 dollars, it remains. “controlled, not panic-driven.”
The analytics platform said that holding above $120,000–$121,000 would confirm a “healthy cooling phase,” Setting the stage for renewed interest and the next upward leg.
Related: $11B Bitcoin whale returns with $360M BTC transfer after 2 months
Buy more than you did in July “real liquidity”
Binance data reinforced The narrative of sustained purchasing momentum. Bitcoin’s value has grown from about $117,000 in early October to over $124,000 today. Net buying pressure (vol_delta), which is the difference between buy and sell volumes, exceeded $500 million on a number of days.
The Z-Score (Z-Score) rose from 0.79 to 0.23, indicating that daily purchases were above the average.
This is more than a short-term surge in enthusiasm. It signals a return of whales and institutional investors. Daily trading volumes are at their highest since July. Bitcoin’s growth is backed by a real liquid market, and not speculative hype.
Some recent sessions have shown a slight dip in the volume delta. However, other indicators like steady volatility and accumulation by mid-sized investors suggest a robust confidence on the market.
The behavior of this month was a stark contrast to the weakness in September. It reinforced the idea that any reversal towards the region of $120,000 could serve as a chance for strategic accumulation, rather than a start to broader reversal.
Related: Bitcoin has room for growth: Why analysts say $300K is still in play
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Source: cointelegraph.com
