👉In this COMPLETE THREAD I will explain “Trading Liquidity”

💥PART 1💥

⭐1. Who moves $BTC
⭐2. What are Market Makers?
⭐3. High frequency bots
⭐4. “Liquidity” explained in chart
⭐5. How trading bots identify Liquidity

👉1. Who moves $BTC

Currently the #Bitcoin has a Marketcap of 1.3 trillion Dollars.

This is a significant amount if we compare it with the capitalization of Gold, Silver or public companies.

The majority of traders doesn't speculate on the price of Bitcoin, the majority holds.

👉1.1 Who moves $BTC

Then you will wonder...

Who moves the price of #Bitcoin❗️ ?

Who is buying and selling 24 hours a day? The 365 days of the year?

Are there really people placing buy and sell orders at all price levels

👉2. What are Market Makers?

They are companies in charge of providing liquidity in the order books of exchanges.

Market Makers are whales within the market, large players.

With sufficient liquidity to assure the Exchange that there will be Supply and Demand at all prices

👉2.1 What are MM?

This is necessary to reduce the spread and provide better service to retail users.

But MM are in charge of placing limit orders in the market, at a fixed price.

They are the orders you see in the Order Books

👉3. High frequency bots

Other big players who move the market are those who operate with high frequency robots.

They have the best resources at their disposal, the best mathematical algorithms, the highest execution speed, the best financial advisors, first-hand information...

👉3.1 High frequency bots

Their high-frequency bots are programmed to detect manipulation opportunities and make profits.

This occurs when there is not enough liquidity and there is no evidence that other bots can operate in the opposite direction.

I hope this THREAD has helped you understand what “Liquidity” means.

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