The coefficient estimating the ratio of purchases to sales for bitcoin has risen sharply on several major exchanges at once. This indicates renewed bullishness near the $29,000 area. According to South Korean analytics platform CryptoQuant, by Aug. 1, ByBit had reached a buy-to-sell ratio of 1.36, the highest in 12 months.
A value above one indicates that the buying volume exceeds the selling volume, which is a clear bullish signal. By the way, ByBit currently ranks 3rd among centralized platforms in terms of trading volumes in futures contracts. The ratio of purchases to sales for bitcoin on the BitMEX exchange reached 1.17, and on the OKX exchange it reached 1.31.
According to CryptoQuant experts, this trend indicates that sellers still do not have enough strength to keep quotes of the flagship crypto asset below the key $29,000 area for a long time. If we evaluate the technical situation, since July, Bitcoin has formed several large bullish candles on the daily chart with obvious descending shadows.
This suggests that the sellers made certain attempts to move quotes to global lows. However, the buyers managed to systematically absorb all the bearish volume. CryptoQuant CEO Kin Yong Joo believes that the spike in buy-to-sell ratio primarily indicates increased activity from institutional investors.
More than 13.3 million bitcoin coins worth more than $388 billion have been dormant for at least a year, according to analytics firm Glassnode. It was emphasized that on the Bitfinex site, this indicator reached an impressive 69% of the total supply of 19.4 million BTC.