- BTC cumulative net taker volume was back in the positive.
- BTC/USDT Liquidation Map from Binance revealed a significant reduction in liquidation events as the price stabilizes.
Bitcoin [BTC] has recently exhibited signs of a potential short-term rally, with the cumulative net taker volume turning positive for the first time since early February.
This shift from a deeply negative net taker volume, where sell orders predominated, to a positive $189 million suggested a change in market dynamics that could propel BTC’s price.
Growing buyer confidence signals potential breakout
The net taker volume measures the difference between buy and sell orders. Recently, it turned positive, standing at approximately $189 million.
Source: CryptoQuant
This shift from a negative trend, where sell orders significantly outweighed buy orders, indicated a growing bullish sentiment among traders.
Given the historical precedent that a net taker volume above $200 million sparks short-term rallies, the current trend suggests a similar potential.
If this metric continues to rise, it could reinforce buying pressure, potentially pushing BTC towards or beyond the $100,000 threshold.
The calm before the surge?
BTC/USDT Liquidation analysis revealed a significant reduction in liquidation events as the price stabilized and started to recover.
Analysis showed fewer high-leverage liquidations, particularly in the 50x and 100x leverage categories, which were prominent during the price downturn.
Source: Coinglass
This decrease in liquidations, especially at higher leverage levels, indicated that the market might be stabilizing, reducing the immediate downward pressure from forced selling due to margin calls.
This stabilization could be a precursor to a price increase, aligning with the positive shift in net taker volume.
Investor sentiment strengthens as optimism builds
The MVRV Z-Score chart for Bitcoin provides insight into whether BTC is overvalued or undervalued relative to its ‘fair value’.
Of late, the MVRV Z-Score has been trending upwards, moving away from the lower green band, which typically signals an undervalued market ready for a rally.
Source: Coinglass
As the score approaches the middle ground, it suggests that BTC might be nearing a point of fair market value, which historically has been a launchpad for price increases.
This trend supports the notion that BTC could be gearing up for a move towards higher price levels.
Will Bitcoin hit six figures?
The BTC OI-Weighted Funding Rate analysis showed that Funding Rates have been relatively stable and positive, hovering around 0.02% to 0.04%.
Positive Funding Rates in Futures markets indicated that long positions were paying short positions, typically a reflection of a bullish market sentiment, where traders are willing to pay to maintain their long positions.
Source: Coinglass
This stability and positivity in Funding Rates, despite some fluctuations, suggests that the market is expecting upward price movement.
Finally, the alignment of these metrics supports the potential for a short-term rally in BTC price.
