Analysis: Binance’s Bitcoin taker order ratio drops to a one-year low, extreme pessimism may signal a short-term reversal
9 minutes ago
CryptoQuant analyst Darkfost pointed out that Bitcoin has accelerated its pullback in recent days, falling 17.5% from its recent peak of $87,400 — a correction relatively common in bull markets. However, pessimism in the derivatives market is intensifying. Binance’s taker buy-sell ratio has dropped to a more than one-year low of 0.85, with sell orders dominating the platform’s trading volume. The monthly average of this metric has also plummeted to 0.97, marking a new low since February this year, when Bitcoin plunged below $60,000 and accelerated its pullback. The analyst noted that this data indicates derivatives traders are in extreme pessimism. However, such extreme bearish sentiment often emerges in the late stage of a pullback; in the short term, this metric typically serves as a bullish contrarian signal. Once market panic is fully priced in, it often signals an impending rebound opportunity.
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