Can someone help me understand this?

[HasHe]

Hey,


So im trying to wrap my head around order books on Poloniex.





Sell Side: $1,025,285

Buy Side: $348,680

With these numbers, shouldnt the price be falling much quicker with such a huge sell side? This was the order book from Pascal earlier today and the price has been floating between 65k-80k satoshi. The sell side was basically the same the entire day and so was the buy side.

Any help is appreciated!

[MadGamer]

Well yes that's the logical thing to happen since the price is based on supply and demand just like bitcoin and the other digital currencies and I guess It did happen since and according to CoinMarketcap , the price went - 17% already 

[HasHe]

yeah, but thats the daily % change. It was floating around -17% all day. With such a huge sell side, it seems that it go down even lower. I dont get how a buy side of 300k is supporting a stable float around 65-80k sat with a sell side of over a mil.

[BigBoom3599]

More money on the sell side doesnt necessarily mean that the price is falling (Although it often is an indicator that it is), what matters more is where the buy and sell orders are located. e.g. if those $1,025,285 would be a at a ridiculously high price, and the $348,680 would be at a normal realistic price. Than the price would go up because there is no resistance on the sell side (until we hit the ridiculously high price of course).
A good way to get an idea of this is to look at the "market depth" tab on polo.

[cakravothy]

Hey,


So im trying to wrap my head around order books on Poloniex.


Sell Side: $1,025,285

Buy Side: $348,680

With these numbers, shouldnt the price be falling much quicker with such a huge sell side? This was the order book from Pascal earlier today and the price has been floating between 65k-80k satoshi. The sell side was basically the same the entire day and so was the buy side.

Any help is appreciated!

because sell pending order use high price
and buy pending order use low price, so is compare sell pending order total is big and above buy pending order

[HasHe]

More money on the sell side doesnt necessarily mean that the price is falling (Although it often is an indicator that it is), what matters more is where the buy and sell orders are located. e.g. if those $1,025,285 would be a at a ridiculously high price, and the $348,680 would be at a normal realistic price. Than the price would go up because there is no resistance on the sell side (until we hit the ridiculously high price of course).
A good way to get an idea of this is to look at the "market depth" tab on polo.

Makes sense! Thanks!

[dearbesz1219]

More money on the sell side doesnt necessarily mean that the price is falling (Although it often is an indicator that it is), what matters more is where the buy and sell orders are located. e.g. if those $1,025,285 would be a at a ridiculously high price, and the $348,680 would be at a normal realistic price. Than the price would go up because there is no resistance on the sell side (until we hit the ridiculously high price of course).
A good way to get an idea of this is to look at the "market depth" tab on polo.

Makes sense! Thanks!

In my way of thinking in this matters regarding to buy and sell orders, is that the more buy orders increase is the more price value increase too. But if the sell orders continuously increase the price will drop depending on how the traders handle it. Just correct me if I'm wrong with my understanding.

[Pursuer]

Sell Side: $1,025,285
Buy Side: $348,680

With these numbers, shouldnt the price be falling much quicker with such a huge sell side? This was the order book from Pascal earlier today and the price has been floating between 65k-80k satoshi. The sell side was basically the same the entire day and so was the buy side.

Any help is appreciated!

first of all how are you getting those numbers from the orderbook?! multiplying the sum (on top) of PASC with highest bid price is not the right way. you should scroll down to a price that you want, look at the column saying Sum(BTC) and multiply that number with bitcoin price (although it is best to report in BTC not $)
same goes for the other side.

second, these are walls not actual filled orders.

third based on the walls and resistances price has more tendency of going up because there is less resistance in sell orders. although this is just tendency not what actually happens. (look at the orderbook/depth chart I think polo has it on the bottom)

[capoeira]

orderbooks are useless for TA. They are there only to get in and out of position