The broader crypto market has become optimistic about the upcoming trend as the Bitcoin price is coiling up. The price of Ethereum is scaling up, many large-cap cryptos are gaining strength, and some mid-cap tokens are also performing well. In the meantime, the bulls and bears appear to have placed their bets, which could intensify over time. This may have a severe impact on the BTC price rally, which could be witnessed as soon as the token marks a new ATH.
Order books are considered one of the best tools to know what’s going on in the market. It is a list of buy orders or bids and sell orders or asks with discrete units. They give an idea of at what price the bulls wish to accumulate BTC and the bears are willing to liquidate.
The recent data shared by an analyst, anonymously known as Bitcoin Munger, shows that sellers are building a new’sell wall’ while buyers want the BTC price to slash hard below $40,000.
The above data shows the sellers are placing huge bets or ‘asks’ just above the ATH at around $70,000 to $72,000. Therefore, the possibility of the price facing a huge rejection after reaching these levels is pretty high. On the other hand, the buyers still expect the price to plunge hard and reach levels below $40,000 as massive amounts of bids are being placed within the $30,000 to $40,000 range. Therefore, considering the above data, analysts mention two main observations,
- The sellers are moving to sell liquidity to the $70,000 levels as they know the current sell wall at around $55,000 to $60,000 may not hold for long
- Many buyers still hope to buy BTC within the range of $30,000 to $40,000. Hence, they will be forced to bid higher, which may offer more fuel to the rally
Besides, if the orders are adjusted, then the buy orders are likely to go higher as they have been there for a long time, meanwhile, sell orders have been adjusting higher this week. Therefore, the analyst believes a new ATH for the Bitcoin (BTC) price could be just a matter of time but the following Bitcoin (BTC) price action could be much more interesting.
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Sahana Vibhute
A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.
