Bitcoin News Today: Investors Turn Bearish as Bitcoin's Buy/Sell Ratio Hits Cycle Low

Bitcoin's 30-day taker buy/sell ratio has fallen to its lowest level since 2018, raising concerns among traders and analysts about potential short-term selling pressure. As of August 27, 2025, Bitcoin is trading at $110,595, down 4.2% from a week earlier and 11% below its recent high of $124,000. The decline highlights a shift in market dynamics, with data from on-chain analytics firm CryptoQuant showing the taker buy/sell ratio reaching levels not seen since late 2021, a period that preceded a sharp correction in the previous cycle [1].

The taker buy/sell ratio, a key metric for gauging market sentiment, has dropped below its historical average, indicating that selling activity has consistently outpaced buying in recent weeks. This divergence between price action and trader sentiment suggests that investors may be locking in profits or reducing exposure amid growing uncertainty. CryptoQuant contributor Gaah noted that the 30-day moving average of the ratio has reached its lowest point since November 2021, a time when Bitcoin briefly hit $69,000 before entering a prolonged downturn. Gaah emphasized that such behavior often precedes heightened volatility, as underlying sentiment deteriorates despite bullish price action [1].

On the derivatives side, the Binance taker buy/sell ratio has also hit a cycle low, according to analyst Darkfost. This metric, which evaluates the balance between aggressive buy and sell orders, currently stands at 0.95, reflecting bearish sentiment. However, Darkfost pointed out that historically, such sharp declines have often acted as contrarian signals, preceding strong rebounds as bearish positioning becomes excessive and creates conditions for short squeezes or renewed buying [2]. The current low levels of the ratio may therefore serve as a potential catalyst for a price recovery if buyers step in decisively.

Technical analysis further supports the idea of a possible consolidation or reversal. Analyst Crypto Nova observed that despite recent weakness, Bitcoin remains in an uptrend characterized by higher lows since its recovery from near $15,000 in late 2022. The current pullback may represent a natural correction phase rather than a bearish reversal, especially given that the $50,000–$70,000 range, previously seen as a top, ultimately gave way to further gains. Nova also noted that corrections do not necessarily confirm a cycle peak, and that a bounce from current levels is likely if support holds [1].

Bitcoin's price has fallen below $115,000 and is now testing the 100-day moving average at $111,140. The 50-day SMA has also turned into resistance, indicating short-term bearish control. For bulls, the immediate challenge is to defend the $113K–$111K range, which could provide the foundation for a rebound if on-chain accumulation or macro sentiment improves. Failure to hold this area risks a deeper correction, with resistance remaining strong at higher price levels [2].

The coming days will be crucial in determining whether Bitcoin stabilizes for another rally or enters a more prolonged consolidation phase. If selling pressure continues, the asset could face further downward movement, but sustained support near $110,000 may offer a base for renewed upward momentum. Analysts and traders will be closely watching on-chain metrics and derivatives sentiment for signs of a reversal in the near term.

Source:

[1] Bitcoin Faces Pressure as Taker Ratio Hits Lowest Level (https://www.mitrade.com/insights/news/live-news/article-3-1071831-20250827)

[2] Bitcoin Binance Taker Buy-Sell Ratio Hits Cycle Low (https://www.mitrade.com/insights/news/live-news/article-3-1060035-20250822)