The relevant on-chain indicator here is the Bitcoin Sender/Receiver Address Ratio, which compares the number of active sending (selling) addresses to receiving (buying) addresses. This metric acts as a means to gauge the prevalent market sentiment within a period of time.
A high ratio (with a reading above 1) indicates that there are more sending addresses compared to the buying addresses. As a result, there is expectedly greater selling pressure in this market condition. On the other hand, a low ratio (a reading approaching 1 and levels below) reflects the preponderance of buying addresses.
CryptoOnchain reported that Bitcoin’s Sender/Receiver ratio on Binance has recently fallen to 1.34 — its lowest level in the past year. As previously explained, when this ratio falls to levels such as it currently reads, it usually indicates that there are more buying addresses relative to the amount of selling addresses in the market.
Interestingly, the analyst also referenced historical evidence, explaining that periods where this shift in market sentiment occurred often preceded the establishment of local price bottoms. As of late 2024, the Sender/Receiver ratio fell to levels around 1.3, with significant upward movement following suit, and a similar pattern was seen in early 2023.
According to CryptoOnchain, this current consolidation phase could signal that the market’s foundation is gaining strength. Thus, if history is anything to go by, Bitcoin’s price could see an immense upward boost in the days to come — one which could sponsor the world’s leading asset to see a fine amount of growth in the mid-term.
As of this writing, Bitcoin is worth approximately $109,899, reflecting no significant movement in the past day. According to data from CoinGecko, the premier cryptocurrency is down by nearly 2% in the past seven days.
