📊 Liquidity Trading Profile: A 4-Year Price Analysis of Bitcoin
By analyzing 11 major exchanges, we identified key price regions in Bitcoin with high trading volume, leverage interest, and trade frequency. 🚀
📉 Gaps in Price Profile: We observed areas where the price did not consolidate—known as liquidity "gaps." Historically, these regions are often revisited in the future, forming new liquidity pools in the market. 🔍
💸 Current Key Gaps: Prices like 71.6k, 59.7k, 53k, 46.8k, 32.3k, and 25.4k show little consolidation, indicating they may become focal points again.
📈 Volume and HFT Activity: Trade frequency is high, but Open Interest (open contracts) has not kept up, suggesting strong activity from High Frequency Trading (HFT) bots, which open and close positions rapidly.
🔻 Decreasing Volume with Rising Price: As Bitcoin's price rises, volume often drops since fewer buyers are willing to pay a higher price, and many investors prefer to hold. This phenomenon can signal a potential loss of momentum in the price uptrend.
These insights help understand market behavior and identify potential opportunities and risks! 🧐📈
