Hyblock Capital: Bitcoin market depth is exhausted, which may indicate a bullish Bitcoin price
On September 14, data tracked by Hyblock Capital showed that 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 downward trend from its high of more than $65,000 in late August has ended.
Liquidity is represented by market depth, which measures the market's ability to absorb large trading 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 bottoming is characterized by traders' difficulty in making decisive actions, 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 early indicators of price reversals, often preceding bullish moves.”