Definition ∞ BTC Net Buying refers to a market indicator that measures the difference between the total amount of Bitcoin bought and the total amount sold over a specific period. A positive net buying figure indicates greater accumulation pressure, while a negative figure suggests more selling activity. This metric provides insight into prevailing market sentiment and demand dynamics for Bitcoin. It helps analysts gauge whether market participants are accumulating or distributing the asset.
Context ∞ Analysts frequently monitor BTC Net Buying data from various exchanges and on-chain sources to identify potential market trends. A sustained period of high net buying often signals a bullish outlook, suggesting increasing investor confidence. Conversely, consistent net selling can indicate bearish sentiment or profit-taking behavior, providing valuable context for understanding Bitcoin’s price movements.