Order Book Depth Bias

Order Book Depth Bias is the tendency to assume that the volume of orders visible in the depth chart is a reliable indicator of future price direction. Traders often see a large wall of buy orders and assume the price will hold, or a wall of sell orders and assume the price will fall.

However, in many digital asset markets, these orders are spoofed or meant to be canceled before execution. Relying on this bias ignores the reality that large orders can be moved or removed instantly.

It is a frequent trap for retail traders who mistake visible order depth for genuine institutional commitment.