Hyblock Capital: Bitcoin market deep exhaustion may indicate bullish Bitcoin price

BlockBeats news, September 14, according to data tracked by Hyblock Capital, market depth (i.e., the collection of buy and sell orders, whether close to the market price 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 a high of more than $65,000 at the end of August has ended.

Liquidity is represented by market depth, which measures the market's ability to absorb large transaction orders without affecting prices. It often depends on several factors, including the time of day, market events at the time, and specific price levels.

The bottom of the market is characterized by traders' difficulty in making decisive actions, resulting in fewer buy and sell orders and reduced liquidity.

Shubh Verma, co-founder and CEO of Hyblock Capital, told CoinDesk: “By analyzing the aggregate spot order book, especially 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. These low order book levels can be an early indicator of price reversals, often preceding bullish moves.”