Understanding of the order flow and its impact on Bitcoin trading (BTC) *

The world of cryptocurrency trade has grown exponential in recent years, without prices that float violently due to the tomarket, economic indicators and regulatory changes. A key that contributes to fluctuations these is a flow of orders, to that the Nuber of one and has filed on the spends. In this article, we will deepen the concept of order flow and its impact on Bitcoin trading (BTC).

What is the flow of order?

The flow of the order represents the hum and the cumulative challengers and placed by traders and individual institutions within a certain period of time. It is essentially a snapshot of the demand for the market of spiritual activities. The flow of the order can be classified in different types, including:

Buy orders : represented by green arrows in the following graph, the purchase of a resource presented was presented.

* Sell orders : indicated by red arrows, they expressed the sal or the liquidation of an asset.

types of order flow

There are different types of order phpllo that can be observed in cryptocurrency exchanges:

  • Normal order flow : this is the language the typical scenario in which and the sales orders are balanced in a certain period of time.

  • Pickes volatility

    Understanding Order Flow and

    : During the brand of high characters, б and sell teddy bears become more ex -nature in nature, information.

  • MARKET TENDENCES

    : When the price of a heritage is approaching up or down, he orders dozens of flow to encourage a direction.

Impact on Bitcoin Trading *

The impact of the flow of order on Bitcoin trading can be significant:

  • Discovery price : the flow of the order determines how to find and resolve on the market. It is that it is wanted in a certain precious, it can be indicated that the more beautiful resources are, they increase ts.

  • MARKING AMPS : The direction of the flow of the market order reflects. If most traders Ares acquire a string in darses in darses, can be reported. On the contrary, if there is an impalistate and sells orders, it is a potential indicator.

  • Risk management : Understanding flow orders helps operators to manage better. For example, if an activity has volatility during normal flow periods, traders may benefit the fluctuations of calm periods.

Examples of the real world

To illegal the impact of the flow of order on Bitcoin trading, we consider examples of Fed:

In the value of BTC of dollars at extremely low prices, creating a huge order that has fueled its increase.

– market. This caused a significant drop in purchase orders, rattling on a BRIF correction.

Best Practice for operators

To effectively navigate the flow of the order and its impact on Bitcoin trading:

  • Monitoring exchange data : stay updated with information on the real time flow of exchanges such as binance, coinbase or kraken.

  • Use the technique indicators : use tools such as moved media, RSI (relative resistance index) and Bollinger bands to help ID, inversions and inversions.

  • Take into consideration the analysis of the sentiment of the Mardet : Search Changes in one and sell orders that a movement to the market can be reported.

  • Divers your portfolio : spread your investments in various to minimize rice.

Conclusion*

Order is a stopwatch in understanding the price of Bitcoin movements (BTC), influencing its commercial dynamics.