According to BlockBeats, data tracked by Hyblock Capital on September 14 indicates that market depth, which encompasses buy and sell orders close to or far from market prices, depleted over the weekend. This pattern typically appears at market turning points, suggesting that the downward trend of Bitcoin from its late August high of over $65,000 has ended.
Market depth, representing liquidity, measures the market's ability to absorb large trade orders without affecting prices. It often depends on several factors, including the time of day, current market events, and specific price levels.
A market bottom is characterized by traders' difficulty in making decisive actions, leading to fewer buy and sell orders and reduced liquidity.
Hyblock Capital's co-founder and CEO, Shubh Verma, told CoinDesk, 'By analyzing the aggregated spot order books, particularly those with 0%-1% and 1%-5% depth, we found that low order book liquidity often coincides with market bottoms. These low order book levels can be early indicators of price reversals, usually preceding bullish trends.'
