The Bitcoin (BTC) market is like an iceberg at the moment, with the surface revealing a dominance of sellers drawing outright bearish sentiment. However, at deeper levels below the surface, bargain hunters are quietly waiting to snap up coins and perhaps set a price floor.
On major exchanges for spot and perpetual futures, the uptrend at the quote level, i.e. the current market price, has turned into a downtrend, indicating that more traders want to sell at the market price, according to data source Hyblock Capital.
The depth of the order book from the bid level (0%) and 1% shows a similar pattern. Order book depth represents the combined value of buy and sell orders at specified levels (1%, 2%, 5%) of the ongoing market price. It shows the market’s ability to absorb large orders at stable prices.
“At the quote level, there has been an upward trend, which has now turned into a downward trend, indicating selling pressure, which is generally where market makers (MMs) operate. Between the quote level to 1%, the action is the same as for MMs, said Hyblock Capital in an analysis post on X.
Moreover, seller dominance near the price level is not surprising, given the recent price action in BTC, which saw the cryptocurrency drop from over $102,000 to $94,000 in days, mainly due to renewed inflation fears in the US. On Thursday, prices dropped at one point to $92,500.
But the real story is the continuing uptrend in market depth of 2% to 5%, which indicates more bids than offers at price levels away from the prevailing market price. In other words, buyers are waiting to enter the market at those levels.
“Between 1% to 2% and 2% to 5% of the book, we see increased demand (more bids than orders over time),” Hyblock added.
Bitcoin was trading at around $94,000 at press time, with traders waiting for the release of US non-farm payrolls on Friday to provide the next trend signal for the risk assets.
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