Bitcoin’s latest drop has been met with firmer spot demand rather than clear signs of capitulation, according to analyst Murphy. In a post cited by BlockBeats on Oct. 8, Murphy said market makers tend to shift liquidity toward the bid side when BTC falls, while traders also place orders at lower levels to catch the move.
Data cited in the post showed that the 5% depth imbalance on Binance’s spot order book briefly reached $80 million when BTC fell to around $83,000. On a relative basis, that reading was higher than during the Sept. 10-16 pullback and close to levels seen during Bitcoin’s bottom consolidation phase in July.
Using $83,000 as the reference point, Murphy said buy orders within the 5% depth range roughly extended down to $79,000. That suggests thicker support in the $83,000-$79,000 zone, which could reduce the risk of the price being broken quickly. At the same time, the gap between taker buy volume and taker sell volume on Binance kept rising during the decline, indicating more aggressive buying and less aggressive selling.
Bitcoin’s decline has not been accompanied by obvious panic selling, according to analyst Murphy, who said bid-side support on Binance strengthened as BTC moved lower.
BlockBeats reported on Oct. 8 that Murphy said market makers naturally shift more liquidity toward the bid side when BTC falls, while traders also place orders at lower prices to wait for fills.
Data cited in the post showed that the 5% depth imbalance in Binance’s spot order book briefly reached $80 million when BTC dropped to about $83,000. Relative to recent moves, that level was above the reading seen during the Sept. 10-16 pullback and close to the level observed during Bitcoin’s bottom-range consolidation in July.
Based on an $83,000 reference price, buy orders within the 5% depth range roughly extended to $79,000. Murphy said that points to relatively thick support between $83,000 and $79,000, which may reduce the risk of a rapid breakdown through that zone.
At the same time, the difference between taker buy volume and taker sell volume on Binance kept rising as the price fell. That indicates aggressive buying increased while aggressive selling declined.
Murphy said the data suggests traders were not showing clear pessimism during the move lower. Passive support below remained relatively sufficient, and willingness to buy actively increased as the decline unfolded.
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