Bitcoin (BTC) $93,505.3 The market currently resembles an iceberg; Seller dominance on the surface clearly indicates a bearish trend. However, buyers expecting a discount at deeper levels are eager to put a floor under prices.
Change in Market Trends
On major spot and infinite futures contract exchanges, the upward trend in the market price level has switched to a downward trend. According to data provided by Hyblock Capital, this indicates that more traders are willing to sell at market price.
Order Book Depth
Order book depth from market price level (0%) and 1% level shows a similar pattern. Order book depth represents the total value of buy and sell orders at specific levels and indicates the capacity of markets to absorb large orders at stable prices.
Reasons for Vendor Pressure
Hyblock Capital stated that the upward trend in the market price level has now switched to a downward trend, indicating that this indicates seller pressure and that market makers (MMs) are usually operating.
“There was an uptrend in the market price level, which has now switched to a downtrend, indicating seller pressure,” said Hyblock Capital.
Bitcoin Price Drop
BTC has fallen from $102,000 to $94,000 in recent days due to inflation concerns in the United States. Prices fell as low as $92,500 at one point on Thursday.
Deep Buyer Expectation
But the real story is the continued rise in market depth between 2% and 5%. This indicates that there are more buy orders at price levels that are far from the market price level.
“We are seeing increasing demand (more buy orders available over time) on the book between 1% – 2% and 2% – 5%,” Hyblock Capital added.
Traders’ Expectation
Bitcoin is trading at around $94,000 at press time. Traders are awaiting U.S. nonfarm labor force data on Friday, which is expected to signal further guidance for risk assets.
Increasing seller pressure in the Bitcoin market indicates that the downward trend may continue in the short term. However, deep-seated buyer expectation may help support prices in the long run.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
