The bitcoin (BTC) market currently resembles an iceberg, the surface of which reveals seller dominance that depicts overtly bearish sentiment. However, at deeper levels below the surface, bargain hunters are quietly waiting to snap up the coins and potentially set a floor under prices.
On major spot and perpetual futures exchanges, the upward trend in quotes, the prevailing market rate, has reversed to a downward trend, indicating that more traders are willing to sell at market price, according to the Hyblock Capital data source.
Order book depth from quote level (0%) and 1% shows a similar trend. Order book depth represents the combined value of buy and sell orders at specific levels (1%, 2%, 5%) relative to the current market price. This shows the market’s ability to absorb large orders at stable prices.
“At the quote level, there was an upward trend, which has now turned into a downward trend, indicating selling pressure, which is usually the case for market makers (MM). Between the rating level and 1%, the stock is the same as MM,” Hyblock Capital said in an analysis article on X.
Additionally, the dominance of sellers near the quote level is hardly surprising, given BTC’s recent price action, which saw the leading cryptocurrency fall from over $102,000 to $94,000 in a few days, mainly due to new concerns about inflation in the United States. At one point on Thursday, prices fell as low as $92,500.
But the real story is the continued upward trend in market depth, from 2% to 5%, which suggests more bids relative to asks at price levels away from the prevailing market rate . In other words, buyers are waiting to enter the market at these levels.
“Between 1% and 2% and 2% and 5% of the book, we see an increase in demand (more supply than demand over time),” Hyblock added.
Bitcoin changed hands at around $94,000 at press time, with traders awaiting Friday’s U.S. nonfarm payrolls release to provide the next directional indication for risk assets.
