The Bitcoin (BTC) market resembles an iceberg at the moment, with an apparent seller advantage and blatant bearish sentiment on the surface. But at a deeper level beneath the surface, bargain hunters are quietly collecting coins and waiting to set a price floor.
According to data source Highblock Capital, the upward trend in market levels, or prevailing market rates, has turned downward on major spot futures exchanges and perpetual futures exchanges, with more traders This indicates that they are thinking of selling it.
Order book depth from the indicative price level (0%) and 1% shows a similar pattern. Order book depth represents the total value of buy and sell orders at a certain level (1%, 2%, 5%) from the current market price. This indicates the market's ability to absorb large orders at stable prices.
“At the market level, there was an uptrend, but now it has turned down, indicating that there is selling pressure, and market makers (MMs) generally do not operate in such situations. From the market level to 1%, the action is the same as MM,” Hyblock Capital said in an analysis post on X.
Additionally, sellers have an advantage near the indicative price given the recent price movement of BTC, which saw the major cryptocurrency fall from over $102,000 to $94,000 in a matter of days, mainly due to resurgent inflation concerns in the US. That's not surprising. By Thursday, the price had dropped to $92,500.
But the real story is the continued upward trend in market depth from 2% to 5%. This indicates that at price levels away from the current market rate, the buy price increases relative to the buy price. In other words, buyers are waiting to enter the market at those levels.
“We're seeing an increase in demand (bids outpacing bids over time) between 1% to 2% and 2% to 5% of books,” Highblock added.
At the time of writing, Bitcoin was trading at around $94,000, with traders awaiting Friday's release of U.S. non-farm payrolls, which could provide clues as to the next direction for the risk asset.
