#What does a positive bid and ask ratio mean for Bitcoin?
A positive bid and ask ratio for Bitcoin has emerged today, marking the first significant shift in months. This indicates an upturn in bullish momentum, where buy demand currently surpasses sell pressure in the market's orderbook.
The bid and ask ratio serves as a crucial indicator reflecting market sentiment. It weighs the buying interest against selling intentions, and a positive outcome suggests that demand is outstripping supply. This imbalance often sets the stage for potential price increases.
Recent trading updates across major exchanges reveal the formation of notable buy walls. These are clusters of substantial passive buy orders that help reinforce upward price movements. Observing these buy walls being filled—without signs of spoofing—points to authentic demand gaining traction.
This development aligns with the observations of traders who see an uptick in limit buy orders influencing the near-term price trajectory. Passive buyers are playing a pivotal role in driving prices upward, rather than the influence of aggressive market purchases. This shift in market behavior illustrates a key aspect of the current trading environment, reflecting optimism among investors.