Bitcoin prices continue to decline in an apparent bearish direction that began in the second week of October. The drop below the psychological support of $100,000 brought to the fore concerns among Bitcoin market participants regarding broader market structure. Interestingly, the latest on-chain valuation justifies this concern, as the downward bias in Bitcoin price appears to be increasing.
Binance taker imbalance falls into negative territory
On-chain research firm Arab Chain revealed in a Quicktake post on the CryptoQuant platform that Bitcoin sell-side momentum is increasing on Binance, the world’s largest exchange by trading volume.
This revelation revolves around the BTC Taker Imbalance % indicator, which tracks whether the market is dominated by active buyers or sellers. Narrowing down this metric provides insight into taker activity on Binance.
This indicator works by revealing the percentage difference between the taker’s buying volume and the taker’s selling volume, so a positive value measurement suggests a buyer advantage in the market. Conversely, a negative number indicates a seller-driven market.
As reported by Arab Chain, selling pressure has clearly increased in recent hours. The % Taker Imbalance reading of -0.17%, which typically reflects continued bearish behavior, supports this observation.
Furthermore, the research firm recently pointed out that there has been a clear difference in the volume of sales and purchases. Quicktake’s post revealed a record $1.517 billion in sales volume compared to $1.058 billion in purchasing power, revealing which party is currently winning this Bitcoin price battle.
Is $92,000 the next Bitcoin price target?
What is interesting is that the current seller-dominated market has kept the BTC price hovering around the critical $94,000 level. Arab Chain noted that every time Bitcoin price attempts to rise, it faces even greater selling resistance, severely eroding bullish momentum.
The gray bars in the chart above suggest that this growing bearish pressure may be more than just a market correction. Rather, this reflects repeated injections of selling pressure, implying that Arab Chain will eventually break through weak buy-side liquidity at current support.
In a likely scenario where further bearish momentum is injected and pushes the market to the downside, the next level that could act as a cushion for the price is around $92,000.
If large amounts of liquidity are not introduced to neutralize the advantage of Bitcoin sellers, the Bitcoin price could see an even more severe bearish correction. At the time of writing, Bitcoin’s value was $96,241, reflecting a drop of nearly 2% over the past day.
Featured image from iStock, chart from TradingView
