Bitcoin Market Update
Key Points:
- Bitcoin sales are on the rise, with growing allocation sizes from spot buyers.
- Liquidation heatmap data indicates potential sales could reach $107,000.
On Thursday, Bitcoin (BTC) dipped to a two-week low of $108,865, attracting interest from various entities looking to buy at the lower end of this week’s price range.
During the past week, traders have taken advantage of intraday lows to make purchases. However, liquidation heatmap data from high block reveals that there are significant liquidation clusters around the $111,000 to $107,000 mark, representing revalidated long positions.
The ongoing activity in the permanent futures market continues to influence Bitcoin’s daily price movements. Institutional traders, dealing in large volumes (between 10-10 million), are dominating the market, overshadowing retail investors who are buying in smaller increments (100-1000).
Bitcoin is hovering near $110,000, but it’s noteworthy that the collective bid ratio in the spot order book has shifted back toward buyers. This measure compares the number of buy orders to sell orders, with a reading that can range from -1 to 1. A ratio above zero suggests that there are more buying orders than selling orders.
High Block notes, “A bid/sell ratio greater than zero indicates that there are more buy orders than sell orders in the order book.”
When scrutinizing the 10% depth on spot exchanges, buyers are starting to emerge as prices have retraced from $111,200 to $110,553. Evidence of this buying activity can be seen in the Anchor’s 4-hour cumulative volume delta, which shows an uptick in purchasing.
Although spot market activity appears minimal when compared to futures, the recent rise in bid ratios favoring buyers is a first since the previous pattern observed from September 5th to September 7th, right before Bitcoin surged from a recent high of $107,500 to $118,200.
This article does not offer investment advice. As always, investors should conduct their own research when making decisions.
