The taker buy sell ratio has been a pretty indicator when the BTC market is overheated. It also give you an early warning signal on when to exit. Now off course I recommend checking other onchain metrics.
Imo the tbsr is better at showing when the market is overbought than oversold. It's good at showing the euphoria stage and when smart money starts to distribute their profits but the prices dont drop right away since retail is still fomoing in.
The current value of the 30 day moving average of the BTC taker buy ratio is 0.98
When it drops below 0.97 you definitely need to think about taking some profits if you are a longterm swing trader. Use a dca out strategy in the same way you would dca into the market.
Written by Onchain Edge
