The bitcoin (BTC) market is currently exhibiting a fascinating structure that resembles an iceberg, with an apparent dominance of sellers near the surface, yet substantial buying interest lurking deeper down.

According to data from Hyblock Capital, the market’s trend has shifted, with the price action at the quote level (the market’s current price) now in a downward direction, suggesting that more traders are inclined to sell at prevailing prices. This downward shift is a typical sign of increased selling pressure, particularly around the quote level, where market makers (MMs) often operate.

“Previously, we saw an upward trend at the quote level, but now it’s been replaced by a downward trend, signaling the presence of selling pressure. Between the quote level and 1%, the pattern continues to reflect market maker behavior,” Hyblock Capital noted in their analysis.

This seller dominance is not surprising, considering bitcoin’s recent price drop from above $102,000 to $94,000, fueled largely by renewed concerns over inflation in the U.S. On Thursday, bitcoin’s price briefly dropped as low as $92,500.

However, the more intriguing aspect of the market is the continued uptrend in order book depth from the 2% to 5% range, indicating stronger buying activity farther from the current market price. This suggests that buyers are positioning themselves at lower levels, waiting for an opportunity to enter.

“Between the 1%-2% and 2%-5% ranges, we continue to see more bids than asks over time, reflecting an increase in demand,” Hyblock Capital explained.

As of now, bitcoin is trading at around $94,000, with traders closely monitoring Friday’s U.S. nonfarm payrolls report, which is expected to provide a critical signal for the next direction of risk assets. The market is watching for how this economic data might influence bitcoin’s price movement and broader market sentiment.