Hyblock Capital: Bitcoin market deep exhaustion may indicate bullish Bitcoin price

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MarsBit
09-14
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According to data tracked by Hyblock Capital, market depth (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 appears at market turning points, indicating that Bitcoin's decline from its high of more than $65,000 at the end of August has ended.

Liquidity is represented by market depth, which measures the market's ability to absorb large trade orders without affecting prices. It often depends on several factors, including the time of day, market events at the time, and specific price levels.

Market bottoms are characterized by traders finding it difficult to make decisive moves, resulting in fewer buy and sell orders and lower liquidity.

“By analyzing the aggregate spot order book, specifically the order book with a spot order book depth of 0%-1% and 1%-5%, we found that low order book liquidity often coincides with market bottoms,” Shubh Verma, co-founder and CEO of Hyblock Capital, told CoinDesk. “These low order book levels can be an early indicator of price reversals, often preceding bullish moves.”

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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