Bitcoin is currently trading in the $72-73K range. It has lost roughly 17-18% since the ~$87K level at the end of September. The Binance derivatives Taker Buy/Sell Delta Z-Score never supported that rally in the first place. From late August to late September, price climbed from $79K to $87K while the SMA(30) delta fell from +0.22 to -0.35. There was no aggressive buyer strength behind the move, which made the decline inevitable. Now a controlled sell-off is absorbing buyers. Even though liquidity sits in the lower zones, Bitcoin keeps moving down.

The Binance Taker Buy/Sell Delta Z-Score (SMA 30) is currently around 0.04. We can call it neutral, as it has not moved to either extreme. However, every time price tries to rise, passive orders push it back down. In early November, the SMA(7) delta climbed as high as +0.4, meaning aggressive buying picked up. Even so, price could not hold at $77.5-78K. This shows that passive limit sell orders are absorbing the buyers.

The reason a neutral reading is not reassuring becomes clear when we look at past bottoms. At the two major lows in early February and from June to early July, the SMA(7) delta dropped to roughly -0.9/-1.0. Taker sellers piled into aggressive orders, capitulation occurred, and recovery began afterward. Today, the delta is nowhere near that zone. Bitcoin is trying to hold around $72K, but the neutral data suggests price may still have further to go. After spending some time in this area, a continuation of the decline looks likely.

In summary, the Binance Z-Score has turned neutral and buyers are not very active. Every time Bitcoin rises, passive sell orders absorb the buyers. The $72K level may act as support in the short term, but continued selling looks likely. This may persist until taker sellers pile into aggressive sell orders. At that point, we can mark the bottom.

Written by FundingVest