In the markets there are two types of buyers and sellers. Either a trader buys or sells instant at the best available market price (taker) or buy/sells with a limit order (maker). In this metric we solely look at the taker volume compared to the total volume. So it basically can show us wether traders are willing to buy Bitcoin for a higher price or to sell for a lower price. This is a good indication of where the selling pressure is at the moment.
When the value is above 1, it means that more traders are buying instantly at the market price. Which shows that there is more buying pressure than selling pressure. If the value is below 1, it means that there is more selling pressure based on the fact that traders are willing to sell at a lower price. This metric is very useful for setting entry or exit targets, short and long term. Do take in mind that when the value is above 1 for example, the price doesn’t necessarily has to go up because of the buying pressure. It should always go together with other metrics strengthening certain possible scenarios.
Find more information on how to use the Taker buy/sell ratio for trading cryptocurrencies in our learn section.