This thread discussed water level measurement. Someone posted a link to an article showing how to implement the capacitive method. I'll be trying this out soon when the parts arrive for it.
https://www.eevblog.com/forum/projects/absolute-pressure-sensor/
If you are referring to the linked pdf it is -one- way of doing it. Interesting with the extra tube on the side though, curious if that improves stability somehow to just have it on the side of the bucket. The reading implementation can also be done in a number of ways, frequency through a lowpass with capacitor, charge timing of capacitor, capacitor dependent oscillator..
In that thread, pressure sensing is also heavily discussed, to me it feels like somewhat of an overkill (and not very cheap) for a small bucket measurement but that must be up to the OP to judge
I still think that the cheapest/simplest would be the isolated plates with the charging measurement type.... but then again, what fun is taking the cheapest alternative :p
Oh and the tilting thing looks very interesting and, assuming you can balance it, also rather simple and cheap.