Bitcoin Rally Masks Bearish Net Taker Volume
Bitcoin has rallied sharply toward its all-time high, but on-chain indicators show caution. Net Taker Volume, which tracks the difference between taker buy and sell volumes in derivatives markets, remains deep in negative territory over the past 30 days. On-chain expert Darkfost notes that declining buy-side pressure and increased seller aggression could signal short-term headwinds, despite the bullish price trend. Traders may choose to wait for a rebound in Net Taker Volume before accumulating more Bitcoin.
Meanwhile, realized volatility in the past three months plunged to 29.79%, its lowest since September 2023, according to Glassnode. Bitcoin’s current low volatility compares unfavorably to previous bull cycles, where it often exceeded 80%. At the time of reporting, Bitcoin traded around $119,400 with a modest 0.27% daily gain. However, trading volume rose nearly 4%, reflecting growing bearish sentiment among investors. Overall, the mixed signals between price action, Net Taker Volume, and volatility suggest caution for traders navigating the current Bitcoin rally.
Bearish
The persistence of negative Net Taker Volume alongside declining realized volatility indicates that despite Bitcoin’s price rally, selling pressure remains dominant in derivatives markets. Historically, similar divergences—where bullish price momentum contrasts with bearish on-chain metrics—often precede short-term pullbacks. With traders awaiting a rebound in Net Taker Volume and more stable volatility before re-entering positions, this suggests bearish near-term implications. However, long-term fundamentals remain intact, making immediate impact likely limited to cautious trading rather than triggering a full market collapse.