Bitcoin price has seemingly continued to decline in its bearish direction that started in the second week of October. After falling below the psychological support of $100,000, concerns have arisen among Bitcoin market participants about the broader market structure. Interestingly, the latest on-chain assessment justifies this concern as the downward bias for the Bitcoin price appears to be increasing.
Binance Taker’s imbalance moves into negative territory
In a Quicktake post on the CryptoQuant platform, on-chain research firm Arab Chain revealed an increase in selling momentum for Bitcoin on Binance, the world’s largest exchange by trading volume.
This revelation revolves around the BTC Taker Imbalance % metric, which tracks whether the market is dominated by aggressive buyers or sellers. If we narrow it down, this metric provides insight into the activities of takers on Binance.
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Because the metric works by revealing the percentage difference between the taker’s buying volume and the taker’s selling volume, measurements with positive values indicate buyer dominance in the market. On the contrary, negative numbers indicate a seller-dominated market.
As Arab Chain reported, there has been a clear spike in selling pressure in recent hours. A Taker Imbalance % value of -0.17%, which typically reflects continued bearish action, supports this observation.
Moreover, the research firm pointed out that there has been a clear difference between sales and purchase volumes recently. The Quicktake post revealed a record $1.517 billion in sales volume, versus $1.058 billion earmarked for purchasing power, making it clear which side is currently winning this Bitcoin price war.
Is $92,000 the Next Bitcoin Price Target?
What’s interesting is that the current seller-dominated market has caused the BTC price to continually fluctuate around the important $94,000 level. Arab Chain noted that any attempt by the Bitcoin price to rise was met with an even greater amount of selling resistance, overcoming any serious bullish momentum.
The gray bars in the chart above suggest that this mounting bearish pressure might not just be a market correction; instead, it reflects a recurring injection of selling pressure, which Arab Chain suggested would eventually defeat weaker buying liquidity at current support.
In the likely scenario where more bearish momentum is injected to push the market lower, the next level, which could act as a buffer for the price, is around $92,000.
If a significant amount of liquidity is not introduced to neutralize the dominance of Bitcoin sellers, the Bitcoin price could undergo an even deeper bearish correction. At the time of writing, Bitcoin is valued at $96,241, reflecting a loss of almost 2% in the past day.
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Featured image from iStock, chart from TradingView