If you ask any trader about technical analysis, they'll talk to you about RSI, MACD, and other established things, but have you ever thought about monitoring the Order Book to know where the market is heading before any other indicator tells you? Whales use it all the time, and you can benefit from it if you understand the game correctly.
How do we read the chart?
Look at the image in front of you; you'll find the order chart divided into two halves:
🔴 The red color (sell orders) = people who want to sell
🟢 The green color (buy orders) = people who want to buy
The more the amount offered for sale exceeds the demand, the more it means there is selling pressure, and the price might drop. Conversely, if there are more buyers, it means the price has a chance to rise.
Analysis on Bitcoin
In the image, the current price is $88,034.63, and the sell ratio is 51.06%, while the buy ratio is 48.94%. The difference isn't large, but if suddenly the buy ratio increases to 55%, for example, it means someone is quietly accumulating Bitcoin before the market jumps.
On the other hand, if we look at the second price chart, we find that Bitcoin touched $76,606 before a bounce occurred, likely because large buyers entered the market at that level and bought significant amounts, which led to the price rising afterward.
How do you use this information?
1. Keep an eye on rapid changes in the supply and demand ratio – if you suddenly see a big increase in demand, this could be an indicator of an imminent rise.
2. Monitor the levels where the highest number of orders are executed – if you find a level with a huge amount of orders, that is likely a strong support and the price might bounce off it.
3. Don't rely solely on indicators – classic indicators depend on old data, but the order chart shows you the actual movement of money before the market moves.
Summary
The order chart is not just a graph; it's the real market radar that reveals the whales as they accumulate or sell before the big move. If you start monitoring it with regular technical analysis, you'll be a step ahead of those who rely solely on lagging indicators.