What to know:
- The market depth at the quote level and from quote level to 1% shows seller dominance.
- But increased demand is seen at greater depth levels.
At the current moment, the Bitcoin (BTC) market is similar to an iceberg – on the surface, it appears that sellers have the upper hand, creating a strong bearish atmosphere. But beneath this surface, shrewd investors known as bargain hunters are patiently biding their time, ready to purchase coins which could potentially set a price floor and shift the market’s sentiment.
According to data from Hyblock Capital, there’s been a shift in the market trend on significant and continuous trading platforms. Now, it appears that more traders are choosing to sell rather than buy, as the trend at current quote levels has moved from an uptrend to a downtrend.
The patterns in the order book depth, starting from 0% up to 1%, are quite similar. The order book depth refers to the total worth of buy and sell orders at distinct levels (1%, 2%, 5%) relative to the current market price. Essentially, it indicates how much the market can handle significant orders without causing a significant shift in prices.
As I delve into my research, I’ve observed an intriguing shift in trend at the quotation level. Initially, it was ascending, but now it’s moving downwards, suggesting a mounting selling pressure – a realm often associated with market makers (MMs). Interestingly, the dynamics between the quotation level and 1% mirror the actions of these MMs. This is according to Hyblock Capital’s recent analysis post on X.
Furthermore, it’s not unexpected that the seller has control close to the price quote, considering the recent trend of Bitcoin (BTC), which dropped from around $102,000 to $94,000 in a short period, primarily due to increased U.S. inflation concerns. On Thursday, prices even dipped as low as $92,500 at one point.
In essence, what’s truly noteworthy is the gradual climb in market liquidity from 2% to 5%, suggesting a higher number of pending buy orders compared to sell orders at prices distant from the current market value. This means that potential buyers are lined up and ready to jump into the market at those specific price points.
Hyblock mentioned that within the book, there’s a rise in demand (with more offers to buy than sell over time) between 1% and 2%, as well as between 2% and 5%.
Currently, the price of Bitcoin was approximately $94,000 as reported, and investors are looking forward to the upcoming release of U.S. nonfarm payrolls on Friday for further guidance on the movement of risk-related assets.
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2025-01-10 10:08