Depth Chart
A visual graph depicting the cumulative buy and sell orders across price ranges in an order book.
What is depth chart?
A depth chart illustrates market depth by plotting cumulative bid (green) and ask (red) volumes on the y-axis against price levels on the x-axis, showing liquidity distribution for a digital asset. On Binance, it flips the order book sideways, with the midpoint displaying the current price and spread. For BTC/USDT, a steep green slope indicates strong buy support at lower prices.
Traders spot patterns like buy walls (cliff-like green areas) at $59,800 for 50 BTC, signaling support, or sell walls at $60,050 capping rises. Deeper charts with gradual slopes show liquidity spread, reducing slippage for large trades. In low-depth markets, thin walls highlight volatility risks during high-volume events.
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