Understanding order current and its impact on Bitcoin (BTC) store
The cryptocurrency trading world has exploded in recent years, and prices are rapidly different due to market views, economic indicators and regulatory changes. One of the main factors that affect these price fluctuations is the order current that indicates the purchase and the number of sales orders at a certain price. In this article, we are considering the concept of order current and its impact on the Bitcoin (BTC) store.
What is the order current?
The order current denotes the cumulative amount of individual merchants and institutions in a specified schedule. This is essentially a snapshot of market demand for certain assets. The order current can be classified as different ways including:
* When buying orders : They reflect the purchase of property in the chart under the green arrows.
* Sell orders : What redouges are indicated by the red arrows, they reflect the sale or liquidation of the property.
Order current ways
Cryptocurrency changes have several order flows that can be determined:
1
Normal sequence Current : This is a typical scenario in which purchase and sales orders are balanced according to a certain schedule.
- Winding Spiali : To buy and sell orders during high marketing volatility, which is extremely extremely, causing higher price fluctuations.
3
Market trends : When the property price is modern up or down, the sequence in the current direction tends to prefer one direction relative to the other.
Impact on Bitcoin store
The impact of current current on the Bitcoin store can be important:
- Finding price : The current order determines how prices are found and resolved in the market. With a high purchase amount at a certain price, this may indicate that more buyers are ready to buy the property by raising the price.
- Market : The direction of order of order often reflects the opinions of the market. If most merchants buy or sell in one direction, this can mean a strong trend. In contrast, if there is an imbalance between buying and selling orders, this may indicate a possible turn.
3
Risk Management : Understanding order flow helps traders better control the risk. For example, if the asset has high volatility during the normal sequence flow periods, traders may use these variations when purchasing or selling during a peaceful period.
Real world examples
Let’s look at some examples of order current impact on Bitcoin trading:
1
2017: “White Whale” Effect : At the time of cryptocurrency boom, one investor (often called “whale”) bought millions of dollars at a very low price, creating a large purchase order that feeded the price to increase.
- 2020: Covid-19 Market Fall : When the World Market responds to the Covid-19 pandemic, Bitcoin’s price fell and unusually high sales orders flooded the market. This led to a significant reduction in purchasing orders, which resulted in a short repair.
Traders’ best practice
Effective order flow navigation and its impact on Bitcoin trade:
1
Follow the exchange information : Be aware of the current changes in real -time customer information on shifts such as Binance, Coinbase or Kraken.
- Use technical indicators : Use tools such as changing average, RSI (relative strength index) and Bollinger bands to identify possible trends and turns.
3
Let’s look at market view analysis : Find changes to buying and sales orders that can highlight changes in market opinion.
- Your versatile portfolio
: Apply investment between different cryptocurrencies to reduce risk.
Conclusion
Order current is a critical factor in understanding Bitcoin (BTC) prices that affect its trade dynamics.
