The bitcoin (BTC) market currently mirrors an iceberg, with its surface dominated by sell orders that suggest a bearish outlook. However, beneath that surface, there is a significant number of buyers quietly waiting to enter the market, potentially providing support for prices.
Recent data from Hyblock Capital indicates that on both spot and perpetual futures exchanges, the market has shifted from an uptrend at the quoted price level to a downtrend. This suggests that more traders are now inclined to sell at market prices. The order book depth, which shows the combined value of buy and sell orders at specific price levels, also reflects this pattern. Order book depth is a key indicator of how well the market can handle large orders at stable prices.
“Previously, the trend at the quoted level was upward, but it has now flipped to downward, indicating selling pressure, which is often where market makers operate. Between the quoted level and 1%, the behavior remains similar,” said Hyblock Capital in an analysis shared on X.
The dominance of sellers near the quoted price is not unexpected, especially given bitcoin’s recent price drop from over $102,000 to around $94,000. This decline has been attributed to renewed concerns over U.S. inflation. At one point on Thursday, BTC’s price dipped as low as $92,500.
However, the more notable trend is the increase in buy orders between the 2% to 5% range, which indicates a growing appetite among buyers at price levels further away from the market’s current rate. This suggests that many traders are waiting for an opportunity to purchase bitcoin at these levels.
“From the 1% to 2% and 2% to 5% price ranges, we are observing increased demand, with more buy orders than sell orders over time,” Hyblock added.
At the time of writing, bitcoin is trading around $94,000 as traders await the release of the U.S. nonfarm payrolls report on Friday, which could provide further direction for risk assets.
