Bitcoin price has apparently continued to decline in its bearish direction, which began in the second week of October. After falling below the $100,000 psychological support, concerns have been raised among Bitcoin market participants regarding the broader market structure. Interestingly, the latest on-chain evaluation justifies this concern, as the downward bias in Bitcoin price appears to be increasing.
Binance Taker Imbalance Falls Into Negative Territory
In a Quicktake post on the CryptoQuant platform, on-chain research firm Arab Chain revealed an increase in Bitcoin selling momentum 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. Boiling it down, this metric offers insight into receiver activity on Binance.
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Because the metric works by revealing the percentage difference between buyers’ purchase volume and buyers’ sales volume, readings with positive values suggest buyers’ dominance in the market. On the contrary, negative readings reveal a market dominated by sellers.
As reported by Arab Chain, there has been an evident increase in the amount of selling pressure in the past few hours. A Taker Imbalance % reading of -0.17%, which typically reflects continued bearish action, supports this observation.
Additionally, the research firm noted that there has recently been a clear difference between selling and buying volumes. Quicktake’s release revealed a record $1.517 billion in sales volume against $1.058 billion dedicated to purchasing power, making it clear which side is currently winning this Bitcoin price fight.
Is $92,000 the next Bitcoin price target?
What is interesting is that the current seller-dominated market has caused the BTC price to continuously hover around the key $94,000 level. Arab Chain noted that each Bitcoin price rally attempt has been met with even greater selling resistance, dampening any serious bullish momentum.
The gray bars in the chart above suggest that this increasing bearish pressure might not simply be a market correction; instead, it reflects a recurring injection of selling pressure, which Arab Chain hinted would eventually defeat weaker buy-side 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 cushion for the price, is around $92,000.
If a significant amount of liquidity is not introduced to neutralize the dominance of Bitcoin sellers, the price of Bitcoin could undergo an even deeper bearish correction. At press time, Bitcoin is valued at $96,241, reflecting a loss of nearly 2% over the past day.
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Featured image from iStock, chart from TradingView
