The Bitcoin recipient buy/sell ratio has seen a significant surge—Is a price spike imminent?

Can increased buying pressure push the price of Bitcoin back to $100,000?

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In an article on December 28 on platform X, renowned cryptocurrency analyst Ali Martinez shared an exciting on-chain observation that may influence Bitcoin's price trend before the end of 2024. The relevant on-chain metric here is the 'recipient buy/sell ratio', which tracks the amount of purchases and sales made by recipients of a specific cryptocurrency.

When the recipient buy/sell ratio is greater than 1, it means that the amount bought by recipients exceeds the amount sold. This phenomenon is typically regarded as a bullish signal, indicating that investors are willing to pay a higher price for a specific asset (in this case, Bitcoin).

On the other hand, if the ratio is less than 1, it indicates that more sellers are willing to sell their assets at lower prices. Generally, this means that selling pressure outweighs buying pressure in the specific cryptocurrency market, reflecting a bearish sentiment among investors.

Martinez shared in his post on X that the Bitcoin recipient buy/sell ratio on the OKX exchange surged significantly to 2.3 on Saturday, December 28. This set of data suggests a spike in buying activity on the centralized trading platform.

Ultimately, this on-chain signal could be beneficial for the flagship cryptocurrency, as the increase in buying pressure may inject some upward momentum into Bitcoin's price. As of the writing of this article, the price of BTC is slightly below the $95,000 mark, reflecting a 0.6% increase over the past day.

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