Bitcoin buy sell ratio
Bitcoin buy sell ratio

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For those unaccustomed to bars, there is a percentage option which shows which way the pressure is going even more in detail. Looking at the next chart showing buy vs sell volume as percentages, we can even clearly spot divergences which can announce the changing market sentiment. The only logical thing for the price is to start plummeting as the selling pressure pushed it down.
As always, experienced traders cannot fully rely on a single indicator to make an educated decision. It is, therefore, advisable to combine the buy vs sell volume indicator with another one which a trader has already mastered. The decline in buying volume complements the falling value of the RSI indicator while the price keeps rising. Usually, this, in the majority of cases, means that the value of the crypto asset is going to drop.
We can also combine it with buy vs sell count. However, in order to explain that, we have to explain the second technical tool first. Buy vs sell count shows the exact number of buy and sell orders which were executed in a predetermined timeframe on the exchange. Just like buy vs sell volume indicator, traders can view it in number ratio or percentage. Buy vs sell count indicator is important for traders because volume and count may not always correlate as one huge market order can outweigh a big number of smaller orders in volume but will impact the price only one time.
In that instance, the green and red bars in buy vs sell volume indicator are going to be exactly the same. However, in buy vs sell count, the green bar is going to be times bigger than the red bar. Therefore, while the volume indicator shows the amount of cryptocurrency traded, the count indicator depicts the exact number of sellers and buyers on the exchange. Since these two can largely differ depending on the situation, it is best to use them as complementary trading indicators.
Since we have learned that using only one indicator can often be misleading, we will use an example to portray how the two indicators explained today can paint a much clearer picture of market conditions. By looking at the buy vs sell count indicator, we can simply deduce that the price was driven by a much bigger number of buyers placing smaller buy orders. The two elaborated indicators are very useful tools in predicting market movement. However, being aware of what they mean is a completely different thing from implementing that knowledge to be an effective trader.
So, like in other aspects of life, do not underestimate the power of knowledge when it comes to crypto trading. Play Now! Tags: bitcoin bitcoin bearish btc btcusd. Tweet Share Share Send. Could you be next big winner? Hououin Kyouma Loves to write, enthusiastic about cryptocurrency.
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