Bid side is getting steep again! Another Tsunami on the way?
yes.
Please forgive such a n00b question.. (but I am a n00b!) --
When i see bid depth like this, quite a bit higher than the ask depth - doesn't this imply the simple priciple of supply and demand.
i.e. - there is more demand than suppply... ergo, price will rise??
At least that is what i assume, please correct me if i am wrong, and a quick / simple explanation too if possible,
(I admit to eing a n00b, i admit i know very littel, but i also want to learn)
Yes and no.
While the law of supply and demand is certainly the driver behind the Bitcoin price, you have to also consider that a lot of people don't have their coins or USD on the exchange right now and that graph only represents people who have staked their position.
What really changes the price of Bitcoin in these early days are the whales (large BTC holders/wealthy individuals). Once you think you know where things are going, a huge whale will splash in out of nowhere and change everything.
Just look at this recent run-up. Nothing on that graph indicated it, and all that happened was some whale came in and bought up a ton of coins out of nowhere.
Right now the Bid depth does indicate buying pressure and thus a higher price, but there could be someone just waiting to put in a massive sell order, changing the whole game. I find this unlikely though, because the (so far) positive talks with US regulators is a HUGE step in the right direction and brings a lot of confidence.
