Key facts:
Bitcoin reached close to $52,000 in the last week.
At the time of this writing, the digital currency is on a slight upswing.
According to various data from cryptocurrency exchanges, the price of bitcoin (BTC) has reportedly reached the bottom of its downward correction.
Bitcoin trading on exchanges “dried up” over the weekend, according to data tracked by analytics firm Hyblock Capital. It indicates that the total volume of buy and sell orders hovers 1% around the current market average price, reflecting low liquidity.
“We see a pattern where low liquidity in the order book often coincides with market lows,” points out Shubh Verma, co-founder and CEO of Hyblock Capital. In other words, he details that the current low trading levels may be early indicators of a price reversal that They usually precede an upward trend.
The specialist highlights that understanding these imbalances can help identify key turning points in the market to trade. “It is a signal worth monitoring for traders looking to catch significant moves before they develop,” he says.
Amid this scenario, the price of bitcoin has shown a slight rebound in the last four days from Friday to today, Monday. As seen below, in this period it went from trading at 52,000, its lowest in a month, to 55,000 dollars (USD).
There is still fear in the bitcoin market
Despite bullish signals suggested by low spot buying and selling volumes, the futures market still shows a bearish sentiment. The financing rates, shown below, are in the negative, reflecting the predominance of positions betting on a price fall.
Meanwhile, Market sentiment is in a state of fearas CriptoNoticias reported this morning. In any case, there is an improvement since last week, when the market was in a situation of “extreme fear.”
