Cycle-Low Taker Ratio Points to Bullish Bitcoin Rebound
Bitcoin has pulled back from its recent all-time high and now trades near $113,500. Data from CryptoQuant shows the Binance Taker Buy-Sell Ratio has fallen to 0.95, its lowest level this cycle. This indicator measures aggressive buy and sell orders in the derivatives market. Historically, sharp drops in this ratio have preceded strong rebounds as bearish positioning creates fuel for short squeezes.
On the daily chart, Bitcoin faces support near the 100-day moving average at $111,140 and resistance at the 50-day SMA around $116,114. Traders will watch the $113K–$111K range as a key zone for either a renewed bullish push or a deeper correction.
The cycle-low taker ratio suggests a contrarian buying opportunity. If buyers step in decisively, Bitcoin could resume its uptrend. However, failure to hold critical support may lead to extended consolidation.
Bullish
Cryptocurrency investors often view extreme readings in the Binance Taker Buy-Sell Ratio as contrarian indicators. The current drop to 0.95 marks the lowest point in this cycle, aligning with historical precedents where similar lows preceded significant rebounds. This phenomenon occurs as excessive bearish positioning creates conditions for short squeezes, driving rapid price recoveries. Coupled with Bitcoin’s proximity to the 100-day moving average support around $111,140, the market setup favors a bullish reversal. While a failure to hold this zone could trigger further consolidation, the cycle-low taker ratio suggests buying pressure may soon shift the momentum upward. Therefore, traders can anticipate a bullish outcome in the short term, with potential for Bitcoin to resume its broader uptrend if key support holds.