Bitcoin Buy Momentum Fades — Key Metric Warns of Price Reversal

Key Insights

• Bitcoin taker buy sell ratio sharply drops

• BTC buyers seem to be exhausted with sellers attempting to retake the market

Bitcoin Buyers are Exhausted

According to Cryptoquant data, Bitcoin [BTC] is seeing a notable decline in both taker buy and taker short volumes across all centralized exchanges. This drop in market order activity indicates that traders on both sides are becoming less aggressive, a behavior often observed during periods of market indecision.

Chart displaying the "Exchanges Taker Buy/Sell Ratio Signal" with total long and short volumes over time. The image shows fluctuations in trading volumes and a trend line representing BTC price changes, indicating shifts in market dynamics and trading behavior.

In simpler terms, fewer traders are willing to enter the market with conviction, hinting that enthusiasm on both the buying and selling side is cooling. Such a market dynamic precedes weakened short-term momentum and potentially resulting to a price pullback.

Taker Buy/Sell Ratio Drops Sharply

The Taker Buy/Sell Ratio, which compares the volume of aggressive buys to aggressive sells, has deteriorated significantly. Over the last 30 days, this metric has declined by 29.3% with the decline spiking over the past 7 days rising by 34.7%.

Also Read: Profit taking dip

Bitcoin Taker Buy Sell Ratio Analysis: This graph illustrates the fluctuations of Bitcoin’s taker buy-sell ratio against its price over several months, highlighting a ratio of 0.873, with significant movements corresponding to price changes reaching up to $106.8K.

This steep decline underscores a drop in bullish conviction a clear sign that sellers are gradually regaining control of spot order flow. The ratio’s 7-day moving average has now declined to 1.2 dipping closer to the psychologically critical 1.0 level, where buy and sell pressure are evenly matched. Once below 1.0, sellers begin to outpace buyers, typically leading to increased downward pressure on prices.

Chart illustrating the exchange taker buy/sell ratio signal alongside 7-day price volatility, highlighting market trends and fluctuations from January to May.

What makes the current scenario even more telling is the spike in 7-day price volatility, which is often seen near major inflection zones in price action. Rising volatility paired with falling buy-side aggression usually signals growing uncertainty and often, an imminent trend reversal. If this pattern continues, it could open the door for a short-term correction, especially if bulls fail to defend nearby support levels.

What This Means for Bitcoin

All eyes now turn to the $105K support zone, which may come under pressure if bearish momentum builds. A failure to hold this level could confirm a downside break, potentially resetting price structure and flushing out weak hands before the next leg up.

Until the Taker Buy/Sell Ratio stabilizes or reverses back above the 1.2 range, the broader market outlook remains fragile, especially in the face of heightened volatility and declining participation. A continuation of the current trend will see BTC drop to $105k and even dip further. A change in market behavior with buyers regaining control, BTC will jump to $109k.