The Bitcoin (BTC) market looks like an iceberg at the moment, with the surface revealing a dominance of sellers drawing an overtly bearish sentiment. But at deeper levels below the surface, bargain hunters are quietly waiting to snap up coins and potentially put a floor under prices.
On the major spot and perpetual futures exchanges, the uptrend in the price level, the current market rate, has turned to a downtrend, indicating that more traders are willing to sell at the market price, according to data source Hyblock Capital.
The order book depth from bid level (0%) and 1% shows a similar pattern. The order book depth represents the combined value of buy and sell orders at specific levels (1%, 2%, 5%) from the current market price. It shows the market’s ability to absorb large orders at stable prices.
“At the bid level there was an uptrend which has now switched to a downtrend indicating selling pressure which is generally where market makers (MMs) operate. Between the bid level to 1% the action is the same as MM’ ernes,” Hyblock Capital said in a research note on X.
Furthermore, the seller dominance near the price level is hardly surprising given the recent price action in BTC, which has seen the leading cryptocurrency fall from over $102,000 to $94,000 in days, primarily due to renewed US inflation concerns. On Thursday, prices at one point fell as low as $92,500.
But the real story is the continued upward trend in market depth from 2% to 5%, indicating more bids than offers at price levels away from the prevailing market rate. In other words, buyers are waiting to enter the market at these levels.
“Between 1% – 2% and 2% – 5% of the book, we see increased demand (more bids than requests over time),” Hyblock added.
Bitcoin changed hands at around $94,000 at press time, with traders awaiting Friday’s US non-farm payrolls to provide the next directional cue for risk assets.
