Order book crypto includes real-time buy orders (bid prices), sell orders (ask prices) from an exchange for a particular asset. These prices are indications of buy/sell interest from various market participants including market makers, institutional and retail traders.

The order book crypto also shows order imbalances that may provide clues to a stock’s direction in the very short term. For example, a large imbalance of buy orders versus sell orders may indicate a move higher in the stock due to buying pressure. Traders can also use the crypto order book to help pinpoint an asset’s potential support and resistance levels. A cluster of large buy orders at a specific price may indicate a level of support, while an abundance of sell orders at or near one price may suggest an area of resistance.

BUY orders get filled at Ask price, and SELL orders get filled at Bid price. The highest Bid and lowest Ask prices are also called the “top of the book”. Also, notice the spread between the Bid / Ask price (top of the book) – tight spread (small difference) is indicative of an efficient, liquid market, and vice versa. For assets with wide spreads (low liquidity), be sure to use Limit order types to minimize slippage (order execution at a poor price).

Each Bid / Ask price has a volume along with it, which forms the market depth.  Traders should pay close attention to market depth if they’re going to trade large size order in a relatively illiquid asset.

The crypto order book is also accompanied by a recent history of completed trades in the market.

 

 

What Is an Order Book and How It Works

An order book in crypto is a real-time list of buy and sell orders for a specific asset on an exchange. It displays:

• Bid prices (buy orders) — what buyers are willing to pay
• Ask prices (sell orders) — what sellers are asking to receive

These prices reflect the current market interest from all types of participants—market makers, institutional traders, and retail traders.

Market Depth and Order Imbalances

Each price level in the order book also shows a volume (amount of the asset) available at that price. Collectively, this forms the market depth.

• A deep market (many orders at many prices) suggests high liquidity
• A shallow market (few orders or large gaps between prices) indicates lower liquidity

By analyzing the order book, traders can spot order imbalances that may hint at short-term price movements:

• If there are many more buy orders than sell orders, it may signal buying pressure and a potential upward move
• If there are many more sell orders, it may suggest selling pressure and a possible decline

Support, Resistance, and the “Top of the Book”

Clusters of large orders can act like support or resistance:

• Large buy orders at a certain price may act as support (price could bounce upward if it reaches that level)
• Large sell orders may act as resistance (price could struggle to move above that level)
• The highest bid and lowest ask are called the “top of the book.”
• The difference between them is the bid-ask spread
• A tight spread = efficient, liquid market
• A wide spread = lower liquidity and potentially higher trading costs

If you are trading assets with low liquidity and wide spreads, use limit orders to avoid slippage (getting filled at a worse price than expected).

How Orders Get Filled

• Buy orders are filled at the ask price (from sellers)
• Sell orders are filled at the bid price (from buyers)

As trades happen, they are removed from the order book and recorded in the trade history, which shows the most recent completed transactions.

Order Book vs. Trade History

Order Book = pending buy/sell orders waiting to be matched

Trade History = list of completed trades (price, size, and time)

Together, they give traders a real-time snapshot of market activity.

Key Takeaways

• The order book shows real-time supply and demand for a crypto asset
• Market depth reveals liquidity and potential support/resistance levels
• Tight spreads mean efficient markets; wide spreads mean illiquidity
• Use limit orders in low-liquidity markets to reduce slippage
• Watch the trade history alongside the order book for a complete picture