Bitcoin Net Taker Volume Bearish as Liquidation Risk Grows
Bitcoin net taker volume has turned bearish, signaling growing selling pressure and a potential liquidation cascade in the futures market. According to CryptoQuant data, net taker volume reached -7.5% on July 29 and eased to -5.2%, but open interest remains high. Top analyst Axel Adler warns the market structure is fragile. Bitcoin trades near $114,000, stuck below the $115,724 resistance and key moving averages (50, 100, 200 SMA). Failure to break above may prompt a retest of $112,000 and $110,000 support. Any adverse news or macro shifts could trigger a cascade of long liquidations, pushing Bitcoin toward the $100,000 mark. Traders should monitor futures positioning and price action for early signs of stabilization or further correction.
Bearish
Bitcoin’s shift to negative net taker volume reflects aggressive seller dominance in the futures market, similar to pre-correction phases in 2021 and early 2024. When open interest remains high alongside bearish net taker volume, the risk of forced liquidations intensifies, often accelerating price declines. In the short term, failure to reclaim $115,724 resistance and key moving averages could drive Bitcoin toward $112,000 and $110,000 supports, triggering stop-losses and margin calls. Traders should watch futures funding rates and positioning for signs of a sudden sell-off. Over the longer term, persistent bearish sentiment may delay a sustained rally, but if Bitcoin holds above $110,000 and net taker volume stabilizes or turns positive, the market could build a base for renewed upward momentum. Monitoring shifts in net taker volume will be crucial for identifying a bullish reversal.