Are Bitcoin Bargain Hunters Ready to Make a Move Amidst Price Drops?

The Bitcoin Iceberg: Buyers Await Beneath The Bearish Surface

The current Bitcoin (BTC) market resembles an iceberg, with the visible part dominated by sellers, creating a bearish sentiment. However, beneath the surface, bargain hunters are waiting to buy coins, potentially stabilizing prices.

On major exchanges, the quote level has shifted from an uptrend to a downtrend, indicating more traders are opting to sell at market prices, as per data from Hyblock Capital.

The order book depth from the quote level (0%) to 1% shows a similar trend. This depth reflects the combined value of buy and sell orders at specific price levels, showcasing the market's capacity to absorb large orders at stable prices.

"At the quote level, there was an upward trend, which has now shifted to a downward trend, indicating selling pressure, where market makers typically operate," stated Hyblock Capital in an analysis.

The dominance of sellers near the quote level is unsurprising, given that BTC's price has recently dropped from over $102,000 to $94,000, largely due to renewed U.S. inflation concerns. Prices even dipped as low as $92,500 at one point.

However, the real story lies in the continued uptrend in market depth from 2% to 5%, indicating a greater number of bids compared to asks at price levels away from the current market rate. This suggests that buyers are poised to enter the market at these levels.

"Between 1% - 2% and 2% - 5% of the book, we see increased demand (more bids than asks over time)," Hyblock added.

As of now, Bitcoin is trading at approximately $94,000, with traders closely monitoring the upcoming U.S. nonfarm payrolls release for the next directional cue for risk assets.

Trends in BTC market depth at the quote level, 0% to 1%, 1% to 2% and 2% to 5%. (Hyblock Capital)