Bitcoin's Net Taker Volume Turns Positive — Understanding Its Significance

Bitcoin kicked off this week with an impressive upward movement, seeing an increase of approximately 9%. It reached a peak of over $97,000, coming close to its previous six-figure valuation. Notably, recent on-chain data indicates that a significant change was occurring alongside this price surge.

Key Takeaways:

Bitcoin's price surged about 9%, reaching over $97,000.
The BTC Net Taker Volume has turned positive, indicating increased buyer activity.
A current shift in market sentiment may suggest a move away from bearish pressure.
Caution is advised until sustained growth in derivatives activity is confirmed.

Bitcoin

Are Bitcoin Bulls Regaining Control?

On January 16, crypto analyst Darkfost shared an important observation on social media platform X, suggesting that Bitcoin bulls might be regaining market control.

The key indicator to monitor here is the BTC Net Taker Volume. This metric assesses which side—buyers or sellers—has more market aggression. It does so by calculating the net difference between buy and sell market orders executed on derivatives exchanges.

Previously, the net taker volume had plummeted into negative territory, reaching a low of around –$489 million. This decline stemmed from a lack of demand in the market, which increased selling pressure and caused Bitcoin's price to drop. However, a turning point appears to have taken place as of January 16.

Bitcoin
Source: @Darkfost_Coc on X

Currently, the Bitcoin Net Taker Volume shows a positive figure, with over $39 million recorded in buy-side volume from futures trading. This indicates that traders are increasingly keen to enter long positions, and doing so aggressively.

Historically, a rise in buying interest within the futures market signals growing bullish sentiment. This sentiment can result in upward price pressure through leverage, potentially leading to intensified short-term price movements if it continues.

Current Outlook for Bitcoin

Darkfost added that while there are indications that Bitcoin ETF inflows could be improving slightly, spot purchasing has not yet gained sufficient strength to trigger a solid bullish movement. Consequently, the focus is currently on derivatives activity, which is providing support for Bitcoin's price.

In essence, the current situation can be seen as a decline in bearish pressure rather than a clear shift in market structure. However, if net taker volume continues to show positive growth, the narrative may evolve from decreasing bearish momentum to increasing bullish trends.

Market participants are urged to proceed with caution until it is confirmed that this derivatives-driven momentum is sustainable for the growth of Bitcoin.

As of the latest updates, Bitcoin's price stands at around $95,357, showing minimal change over the past 24 hours.

Bitcoin
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView