On-chain data shows that bitcoin buying and selling volumes have seen significant spikes over the past day as the price goes through volatility.
Bitcoin Taker buy and sell volumes reached high values
As one analyst pointed out in a post on CryptoQuant, BTC taker buy and sell volumes reached over $1.8 billion yesterday.
The “taker buy/sell volume” is an indicator that measures the long and short volumes of Bitcoin on derivatives exchanges. The metric distinguishes these two volumes depending on whether the transaction takes place at the ask price (buy taker) or at the bid price (sell taker).
When these volumes are high, it means that the exchanges are currently receiving a large number of orders. This type of trend usually leads to higher volatility in the price of crypto.
On the other hand, low values suggest that there is little activity in the market at the moment, which may lead to more stale price action for BTC.
Now, here is a chart that shows the trend of Bitcoin Taker buy and sell volumes over the past two weeks:
The values of the two metrics seem to have shown large spikes during the past day | Source: CryptoQuant
As you can see in the graph above, bitcoin takers’ buying and selling volumes have seen quite significant increases recently.
The spikes came just after Federal Reserve Chairman Jerome Powell issued an interest rate warning in a speech yesterday.
The taker’s buy volume only took an hour to reach $1.8 billion, while the taker’s sell volume increased further to around $1.92 billion.
The value of Bitcoin observed a drop below the $20,000 level sometime after this rise in market activity. Currently, it is unclear if this was for volatility or if the coin will continue to see stronger price action in the near future.
As of this writing, the price of Bitcoin is hovering around $19.8,000, down 6% in the past seven days. Over the past month, the crypto has lost 6% in value.
The chart below shows the price trend of the coin over the past five days.
Looks like the value of the crypto has sharply declined over the last twenty-four hours | Source: BTCUSD on TradingView
After moving mostly sideways over the past week, Bitcoin appears to have broken out of the range today as the crypto fell below $20,000 for the first time since mid-July.
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com