Hyblock Capital: The depletion of depth in the Bitcoin market may signal a bullish trend for Bitcoin prices

ChainCatcher news, according to data tracked by Hyblock Capital, market depth (the collection of buy and sell orders, whether close to or far from market prices) has dried up over the weekend. This pattern typically appears at market turning points, indicating that the trend of Bitcoin's decline from the high of over $65,000 at the end of August has ended.

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

The characteristic of a market bottom is that traders find it difficult to take decisive action, leading to a reduction in buy and sell orders and a decrease in liquidity.

Shubh Verma, co-founder and CEO of Hyblock Capital, stated in an interview with CoinDesk: "By analyzing the aggregated spot order book, particularly the 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 may be early indicators of price reversals, typically preceding bullish trends."