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How to decrypt an order book? This is a question many beginner traders ask themselves.
The structure is simple: at the top of the order book, you find the sell orders (asks), usually displayed in red. Each line shows a target price and the total quantity that sellers are offering at that level.
Specifically, if you see 0.5 BTC at $92,300, it means that at this exact price, 0.5 bitcoin is available for sale. At the bottom of the order book (often in green), are the buy orders (bids) which work on the same principle.
Understanding this mechanism is essential to anticipate price movements and identify support or resistance levels. The more volume at a given price, the more significant that level becomes for the market.
Wait, does anyone really not understand this?