bAccording to the order book on the Coinbase exchange, itcoin investors and traders are targeting a price range of $17,000. When bitcoin hit its all-time low after the 2017 bull run, the market panicked and there was a significant imbalance between bid and ask. This was the last time we saw such bid-side tilt in the order book, back in March 2020.
Beginning in early June 2022, Bitcoin had a drop from its psychological price of $30,000 to a low of $17,600. Following this drop, the price of bitcoin began to stabilize around the $20,000 level. The sideways trend encountered very severe resistance at $22,500.
Since heavy buy volume around a price only serves to create an order book support level and does not drive the price down a level, such a significant imbalance is not necessarily true for the market.
Another BTC Decline on the Horizon?
It represents their desired purchase price, and the distribution of orders on the market is an excellent indicator of how retail investors are currently feeling. In this instance, it is obvious that the bulk of market players are planning on another BTC decline in the near future.
The lack of optimism in the market is largely speculative as neither Bitcoin nor its associated events have given us any reason to think that Bitcoin will drop below $20,000, especially given the profitable runs we have seen in the past few weeks.
Bitcoin is currently moving within the upward channel it has been unable to break for the past few weeks. Unfortunately, Bitcoin was unable to rise beyond the $24,000 price range either, falling back to the channel’s lower edge. Since Bitcoin prices have now managed to overcome the significant resistance level of $23,000, one can anticipate a brief decline before prices resume their upward trend.
