Market Demand

Market demand is the aggregate desire of market participants to purchase an asset at various price levels. In the order book, this is reflected by the volume of buy orders sitting at the bid side.

High demand often pushes prices up, as buyers are willing to pay more to ensure their trades are executed. Traders monitor demand levels to identify potential support zones and predict upward momentum.

It is a critical component of market sentiment, and when coupled with supply data, it allows for a clear picture of the current equilibrium price and the likely direction of the next move.