Bitcoin order book depth disappears after June build-up

The substantial layer of buy orders built up below the Bitcoin price in June has now largely disappeared. That is evident from an analysis by Glassnode, which closely tracks the development of order book depth on the spot market. What remains is a considerably thinner support floor, while Bitcoin is currently trading around $63.009, virtually unchanged over the past 24 hours.

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In short:

• The large wall of buy orders built up below Bitcoin in June has largely disappeared.
• Glassnode notes that the support in the order book is now considerably thinner than a few months ago.
• The price is currently around $63.009, virtually unchanged on a daily basis.

Order book loses depth after June buildup

Glassnode publishes weekly analyses of spot market order book depth for Bitcoin. In the most recent update, it is striking that the buy side of the order book, particularly 500 to 2,000 basis points below the market price, has declined sharply compared to June.

During that period, a dense layer of buy orders emerged well below the price, which is commonly referred to in the market as a buy support wall. Those orders act as a buffer: they can slow a sharp decline because there is demand ready to catch Bitcoin at lower levels. That buffer has now largely disappeared.

Few sell orders at the top

The Glassnode chart also shows a striking picture on the sell side. Above the current market price, hardly any sell orders are visible, which means there is little direct resistance to a potential price rise. Yet this has not managed to push the Bitcoin price higher so far: Bitcoin is barely responding to positive macroeconomic news for now.

The disappearance of the buy support does not necessarily mean that a decline is inevitable, but it does indicate that the market is less well protected against downward movements than a few months ago. Earlier, analyst Michaël van de Poppe already noted that Bitcoin is stuck in a narrow range, without a clear direction.

Pressure on the market is increasing

The reduced order book depth coincides with a series of other signals pointing to caution among investors. For instance, Bitcoin ETFs saw an outflow of $131 million on 13 August, and that followed three consecutive days of outflows.

At the same time, whales recently deposited a record amount of Bitcoin on Binance, which typically points to selling pressure. The combination of a thinner order book, sustained ETF outflows and increased whale activity reflects a cautious market sentiment around the current price level.