Market Depth Depleted Over Weekend, Signaling Potential Bitcoin Bottom: Hyblock Capital

According to data tracked by Hyblock Capital, market depth, the collection of buy and sell orders, both near and far from the market price, dried up over the weekend. This pattern typically emerges at market turning points, suggesting the downward trend in Bitcoin, which has been falling from its August peak above $65,000, may be coming to an end.

Liquidity, represented by market depth, measures a market’s ability to absorb large trade orders without affecting price. It is often influenced by factors such as time of day, current market events, and specific price levels.

A market bottom is characterized by traders' reluctance to take decisive action, leading to fewer buy and sell orders and decreased liquidity.

Shubh Verma, co-founder and CEO of Hyblock Capital, told CoinDesk, "By analyzing the aggregate spot order book, especially the order book depth at 0%-1% and 1%-5%, we have observed that low order book liquidity often coincides with market bottoms. These low order book levels could be an early indicator of price reversals, often preceding bullish trends."