Depths of the Bitcoin Market Suggesting a Potential Price Rebound
Publication Time:2024-09-14 23:01:08
Market depth serves as a crucial metric that gauges the market's capacity to process large volumes of trading orders without significantly affecting prices. It is influenced by various factors such as trading hours, market activity, and specific price levels. When the market hits its bottom, there tends to be an increase in hesitation among traders, leading to a decrease in both buy and sell order quantities and a subsequent drop in liquidity. Through a thorough analysis of the combined spot order book, particularly focusing on the depths within the 0%-1% and 1%-5% intervals, studies have shown an early correlation between market bottoms and subsequent bullish trends. These lower order book levels can be seen as signals of price reversals, typically preceding positive price movements.
Bitcoin
Price Rebound
Market Depth
market inflection point
trading orders