Bitcoin is marginally down over the past week, trading at around $63,550 as of Monday, and losing 2 percent. While the cryptocurrency’s weak price action continues to trouble the BTC permabulls, some signs are pointing toward the start of a bull run in the coming weeks.
BTC taker buy volume hints at approaching bottom
According to exchange data received on Monday, BTC’s 30-day average taker volume on Binance crypto exchange has fallen all the way down to $3.3 billion. Notably, the digital asset last visited this zone around the late-2020 reset, the 2022 cycle bottom, and the 2023 consolidation.
For the uninitiated, the 30-day average taker buy volume measures the average dollar value of aggressive market-buy orders executed on an exchange over the past 30 days.
A falling reading indicates weakening immediate buying demand, while a sharp recovery can signal that aggressive buyers are returning. However, in the current context, what really stands out is the divergence between BTC’s price and network participation.
Although BTC is still trading in the low $60,000 range, aggressive market-buying activity has contracted to levels recorded when the digital asset traded at substantially lower prices.
Beneath Bitcoin’s price, this points to fading speculative demand, reduced urgency among buyers, and a broader loss of market conviction. Historically, similar contractions have appeared during periods of capitulation or accumulation and have preceded a recovery in demand.
That said, low taker buy volume is a condition, not a reversal signal. It shows that aggressive buyers have withdrawn, but it does not prove that selling pressure has been fully absorbed.
A more believable market bottom signal for BTC requires it to stabilize, while taker buy volume begins to recover. On the other hand, continued price weakness alongside persistently depressed volume would indicate an ongoing demand vacuum.
Other BTC bottom signals
Besides the falling taker volume on Binance, BTC is flashing multiple other signals that point toward a looming market bottom. On Thursday, BTC’s supply in profit tumbled to 51.4 percent, enhancing the odds of a market bottom.
The digital asset is also seeing vastly fewer short-term holders, another bullish data point that could result in a reclaim of the $70,000 price level. However, some warning signs persist – especially the outsized action in the BTC derivatives market compared to the spot market.
