📊 Bitcoin - Liquidity Zone: An Extremely Interesting Metric!

This metric allows for measuring Net Longs, Net Shorts, and Net Delta, as well as the Open Interest profile of 11 exchanges. Unlike the commonly known Liquidation Levels, the Liquidity Zone shows exactly where there is a concentration of Longs and Shorts across different time frames, as well as indicating the price regions where these positions were opened.

In the last 720 days, the majority of positions concentrated on Longs, while periods of Shorts dominance presented excellent buying opportunities. Over the past 200 days, quicker buying and selling opportunities have become even more relevant, demonstrating how impactful trader sentiment is in a highly leveraged market. Exchanges and market makers will go to great lengths to force mass liquidations!

With the Net Delta Position, it is easily identifiable that in regions with many Shorts, the price tends to bounce back up, causing a Short Squeeze. Conversely, when there is a large concentration of Longs, price tops are formed, and subsequently, the price falls in a Long Squeeze! 🦈