The bitcoin (BTC) market resembles an iceberg at the moment, the surface of which reveals a dominance of sellers that paints an openly bearish sentiment. However, deeper beneath the surface, bargain hunters are quietly waiting to snap up coins and potentially put a floor on prices.
On major spot and perpetual futures exchanges, the bullish trend at the quote level, the prevailing exchange rate in the market, has turned into a bearish trend, indicating that more traders are willing to sell at the market price , according to data source Hyblock Capital.
The depth of the order book from the quote level (0%) and 1% shows a similar pattern. Order book depth represents the combined value of buy and sell orders at specific levels (1%, 2%, 5%) of the current market price. It shows the market’s ability to absorb large orders at stable prices.
“At the quote level, there was an uptrend, which has now changed to a downtrend, indicating selling pressure, which is where market makers (MMs) typically operate. Between the quote level and the 1%, the stock is the same as the MMs,” Hyblock Capital said in an analysis post on X.
Furthermore, the seller’s dominance near the quote level is not surprising, given the recent price action in BTC, which has seen the leading cryptocurrency fall from over $102,000 to $94,000 in days, mainly due to renewed inflation concerns. in the United States. At one point on Thursday, prices fell as low as $92,500.
But the real story is the continued bullish trend in market depth of 2% to 5%, which points to more bids relative to asks at price levels far from the current market rate. In other words, buyers are waiting to enter the market at those levels.
“Between 1% – 2% and 2% – 5% of the book, we see higher demand (more offers than requests over time),” Hyblock added.
Bitcoin changed hands at around $94,000 at press time, with traders awaiting Friday’s US nonfarm payrolls release to provide the next directional signal for risk assets.
