BTC Taker Buy Ratio Hits 0.47, Signals Market Bottom
Bitcoin’s Taker Buy Ratio (TBR) plummeted to 0.47 on major exchanges, marking multi-year lows and signaling potential capitulation and a market bottom. Data from CryptoQuant and Binance show a surge in exchange inflows as sellers overwhelm buyers, pointing to panic-driven liquidation. At the same time, investors rotate out of tokenized gold (PAXG) into Bitcoin, seeking higher-beta hedges amid gold fatigue. Historically, Bitcoin’s correlation with gold hovered around 5–7%, but improved USD liquidity and recent deleveraging are bolstering BTC’s emerging safe-haven role. While further downside cannot be ruled out, a rebound in TBR above 0.5 could trigger a short squeeze. Traders should monitor the Taker Buy Ratio, exchange flows, and gold-to-BTC rotation for early signals of a Bitcoin rebound.
Bullish
The collapse of Bitcoin’s Taker Buy Ratio to 0.47 coincides with panic-driven selling and extreme fear, often preceding market bottoms. Exchange inflows spiked, confirming capitulation. Concurrent gold-to-BTC rotation reflects growing demand for higher-beta safe havens. Historically low correlation is strengthening, boosted by improved USD liquidity and deleveraging. A rebound in TBR above 0.5 could trigger a short squeeze, driving a sharp price reversal. While bearish forces may persist in the very short term, these indicators suggest a bullish inflection point and set the stage for a sustained rally.