Golden liquidity levels 💰- key price levels that are difficult for buyers or sellers to break due to the concentration of large limit orders.
Before we move on to today's situation and how the market reacts to such levels, I will share some details about golden markets. If this article has been helpful to you - please subscribe to me. Give it a like, and also trade with me in my Copy Trading.
Golden liquidity levels in Bitcoin are key price levels where the highest amount of liquidity is concentrated in the market. These levels often coincide with important supports and resistances, where large trading volumes occur. They are important for traders, as sharp reversals or price breaks often happen at these levels.
Characteristics of golden liquidity levels:
1. High concentrations of orders
Levels where limit orders to buy or sell are concentrated often become liquidity zones. Such zones can be identified through:
Trading volume analysis.
Using the order book.
2. Accumulation or distribution zones
These are levels where large players (whales, funds) actively buy or sell assets.
3. Psychological levels
Round numbers (for example, $30,000, $40,000) often attract liquidity, as traders and investors intuitively place their orders around them.
4. Fibonacci and technical analysis levels
Fibonacci retracement and extension levels often coincide with liquidity zones. For example:
61.8% Fibonacci retracement level.
Broken support/resistance lines that become new liquidity levels.
5. Historical highs and lows
Old peaks or troughs are important points where liquidity often concentrates.
How to determine golden liquidity levels?
Volume analysis (Volume Profile)
Using volume profiles allows you to see at which price levels the highest trading volumes were.
Open Interest
Data on open positions in derivatives (futures, options) help to identify where stop orders and liquidations are located.
Stop orders and liquidations
Large clusters of stop-losses often act as a magnet for price.
Why is this important?
Large players, such as market makers and funds, use these levels to obtain liquidity for their trades. Traders can use the knowledge of golden liquidity levels to:
Understand where strong movements may occur.
Place your stop orders away from liquidity clusters.
Look for market entry on pullbacks after liquidity gathering.
Tools for analysis:
1. Glassnode, CryptoQuant — analysis of liquidations and liquidity flows.
2. TradingView — volume levels and indicators (for example, Volume Profile).
3. Order book on exchanges — Binance, Bybit, Bitfinex.
EXECUTION OF GOLDEN LEVELS
I will give a classic example specifically from our bullish cycle.
During the bullish rally to $100,000, there were large orders at the levels of $100,000 and $105,000. Even then, it was clear that breaking $100,000 on the first try would be very difficult. And when $100,000 is broken, the buying pressure will not be enough to break $105,000.
And that's how it turned out. In the next screenshot, the execution of these levels:
WHAT IS HAPPENING SPECIFICALLY RIGHT NOW
At this moment, it can be confidently stated that the level of $90,000 will be extremely difficult to break through. It can be said that $90-92,000 is the strongest support zone at the moment.
The golden resistance zone has shifted to $103,000. This level 1 is similar to $100,000. Most likely, to break through it, a 'move down' will be required not once or twice.
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