Bitcoin (BTC) Market Analysis: Selling Pressure Mounts as Buyers Wait for the Right Moment

On January 10th, an analysis from CoinDesk’s Omkar Godbole suggested that the current Bitcoin (BTC) market resembles an iceberg, where visible signs indicate a prevailing bearish sentiment alongside significant selling pressure. However, there exists a layer of prospective buyers beneath this surface, poised to capitalize on potential low buying opportunities to lend support to Bitcoin’s price at critical junctures. According to data from Hyblock Capital, major exchanges have experienced a shift in the quoted price level from an upward trajectory to a downward trend, reflecting a market psychology increasingly inclined towards selling at prevailing prices.

The order book’s depth, particularly between 0% to 1%, mirrors this selling inclination, displaying a calculated response to market fluctuations. Hyblock Capital noted, “Previously noted upward trends in quoted price levels have transitioned to a downward flow, underscoring a spike in supply pressure.” Furthermore, Bitcoin’s recent value fluctuation—plummeting from over $102,000 to around $94,000 amid inflationary fears—has led sellers to dominate market activities, notably when prices dip to $92,500.

Notably, a rise in market depth from 2% to 5% suggests a growing imbalance, where buy orders are starting to outweigh sell orders at these distant levels. Hyblock’s report emphasized, “In the critical zones between 1%-2% and 2%-5%, we observe a marked increase in demand as buy orders begin to surpass sell orders, indicating buyers are strategically biding their time.”