Important points:
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Bitcoin net taker volume has recovered from extremely bearish levels to neutral levels.
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On-chain and market data shows controlled profit-taking rather than panic selling.
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Binance data shows that Bitcoin buying momentum is the strongest since July.
Bitcoin (BTC) price has stabilized above $120,000 after a sharp correction from Tuesday’s all-time high. As buyers retreat, spot and derivatives markets appear to be converging towards a more balanced state, providing a stronger foundation for the next rally.
According to CryptoQuant, the medium-term trends in the derivatives market have changed markedly. Net taker volume, which compares sell and buy orders, has recovered from an extremely bearish level of -$400 million to a neutral level, indicating a “true shift in dominance between buy and sell pressure.”
A similar trend occurred during Bitcoin’s April correction, paving the way for a new uptrend of 51% over the next 13 weeks. But analysts warned that if buying pressure accelerates quickly, a sudden swing into significant positive territory could signal overheating in the market.
Similarly, Joanne Wesson, CEO of Alpharaktal, noted that the differential in buying and selling pressures remained solidly positive. “Indicators like this can take it to a whole new level and greatly increase the accuracy of decision-making,” Wesson said, noting that buying with discipline when sentiment appears to be at its weakest has consistently paid off in recent months.
Meanwhile, SwissBlock’s analysis stressed that although short-term profit-taking has occurred after Bitcoin hit a new high around $126,000, it remains “subdued rather than panic-driven.”
The analytical platform said that sustaining above $120,000 to $121,000 would confirm a “healthy cooling phase” and set the stage for fresh demand and the next bull market.
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Strongest buying surge since July proves ‘real liquidity’
Binance data confirmed sustained buying momentum. Since the beginning of October, the price of Bitcoin has increased from about $117,000 to $124,000, and the net buying pressure (vol_delta) exceeded $500 million in a few days, meaning that buying volume exceeded selling volume by that difference.
The imbalance ratio (imbalance_pct) reaches 0.23, indicating that buy orders are about 23% higher than sell orders. Meanwhile, the Z-score increased to 0.79, reflecting above-average daily purchase activity.
These numbers indicate more than just short-term enthusiasm. They suggest a resurgence of institutional participation and whale participation. Daily trading volume has reached its highest level since July, suggesting that Bitcoin’s rally is being supported by real liquidity rather than temporary speculation.
Although we have seen a slight decline in volume delta in recent sessions, broader indicators such as stable volatility and continued accumulation by mid-sized holders suggest that market confidence remains solid.
This move was in sharp contrast to September’s weakness, reinforcing the view that the decline towards the $120,000 area is more likely to be a strategic accumulation opportunity rather than the start of a deeper reversal.
Related: Bitcoin has room to grow: why analysts say $300,000 is still valid
This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making decisions.