We will continue to share with you the data on the chain of similar types, and BUILD together in the bear market.
Taker means liquidity drainer, which means that a trader who looks at the orders in the exchange's depth chart and takes the initiative to place an order to eat an existing order, i.e. to close a deal, and at the same time drains liquidity from the market.
Methods of analysis
Ratio of Taker's buying volume to selling volume in futures trading.
If the value exceeds 1, it means the market is dominated by Bullish sentiment.
If the value is below 1, it means Bearish's emotions are dominating the market.
Usually, when the data confirms that a horizontal line has been crossed (not a false breakout), the price of Bitcoin rises and falls significantly in the short term.
However, it is important to note that the Taker data sometimes does not reflect the reality. For example, the data from January to May last year was below the level, but in fact prices were in an uptrend at that time, and there were a lot of retail FOMO rushes into the market, so the market sentiment was Bullish.
The reason why the data mentioned above sometimes do not reflect the reality is that although futures are more dominant in the currency market, the rise and fall of the currency price is still affected by other aspects, such as various data and factors in the spot market.
So it's hard to draw conclusions from just looking at one piece of data, but the Taker Buy Sell Ratio still has its place, and at least we know for sure what the current sentiment in the futures market is dominated by.