Bitcoin, which has been struggling with sharp declines since its ATH in March, has experienced another decline in recent days.
After this decline, questions such as “Are these levels the bottom now? Will Bitcoin turn from here?” came to the fore, while Hyblock Capital analysts said that Bitcoin order books showing supply and demand dynamics indicate a potential price bottom and an upward trend on the horizon.
According to Coindesk, Hyblock Capital said the data showed that market liquidity, i.e. buy and sell orders both close to the market price and further away, dried up over the weekend.
The analytics firm noted that this is a pattern often observed at market turning points and suggests that BTC’s decline from peaks above $65,000 in late August is over.
Speaking to Coindesk, Shubh Verma, Co-Founder and CEO of Hyblock Capital, said:
“Analyzing the combined spot order books, particularly at 0%-1% and 1%-5% spot order book depth, we see a pattern where low liquidity in the order book often coincides with market bottoms.
Market bottoms are periods when investors have difficulty making decisive moves, leading to fewer buy and sell orders and reduced liquidity.
These low order book levels can be early indicators of a price reversal, which often follows a bottom and uptrend.”
Bitcoin continues to trade at $55,440 at the time of writing.
*This is not investment advice.
