According to data tracked by Hyblock Capital, the depth of the market (i.e. the collection of buy and sell orders, whether close to or far from the market price) dried up over the weekend. This pattern usually occurs at market turning points, indicating that Bitcoin's downward trend from its late August highs above $65,000 has ended.
Liquidity is represented by market depth, a measure of the market's ability to absorb large trade orders without affecting prices. It often depends on several factors, including the time of day, current market events and specific price levels.
Market bottoms are characterized by traders' difficulty in taking decisive action, leading to fewer buy and sell orders and reduced liquidity.
In an interview with CoinDesk, Shubh Verma, co-founder and CEO of Hyblock Capital, said: By analyzing comprehensive spot order books, particularly those with spot order book depths of 0% -1% and 1% -5%, we found that low order book liquidity usually coincides with a market bottom. These low order book levels can be early indicators of price reversals and usually precede bullish trends.
Hyblock Capital: Bitcoin market depth drying up, or indicating a bullish bitcoin price
2024-09-14 14:58:20
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