11 Comments
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Pedro Vieira's avatar

Love this, thanks for sharing this great content. I honestly say that you are one of the few which i take extra time to carefully read and digest the knowledge shared with your posts. Thank you very much!!! 👍👏

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Ben Lilly's avatar

Much appreciate the comment. Thanks, Pedro. Glad to have you.

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Oliver's avatar

Another great article, thanks for that. I am having a hard time to wrap my head around the concept of "hunting for liquidity" and "sweeping liquidity pools". In general the game of short/ long plays. Can you please explain it deeper some time? I remember that article about inflation, where you explained it with an easy example (like money supply 100$ etc). I would highly appreciate that.

Thanks Ben!

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Ben Lilly's avatar

Sure thing. You have $100 position where you go long at $20k. Then your position gets liquidated as price falls below $20k. Whether that's $19.5k, $19k, or lower depends on the leverage employed. These pools indicate an overview of where positions in crypto are forced to shut down / close out. Price is attracted to these areas especially when price moves sideways.

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Oliver's avatar

Thanks Ben, now I get it :-) Say people trading the positions on Binance. Do they see where the large pools are sitting - like are there indicators on the GUI?

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Ben Lilly's avatar

Not at all. It’s all based upon the assumptions placed on the data you ingest. So this is not exact, it’s just what we think is correct and helps us gauge things.

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Oliver's avatar

Allright, thanks for shedding light. Now I got a better idea about the "sweeping liquidity pools".

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Simon's avatar

Thanks for this quality content!

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Ben Lilly's avatar

Glad you enjoyed it, thank you for the feedback

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Mr Palmito's avatar

Maybe my comment is a bit basic, but it looks like eth is forming a cup and handle pattern...time will tell.

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Ben Lilly's avatar

Agree only time will tell. Lots to consider on that one, really like how its lower emissions hit as the market softened.. Will create strong price elasticity effects once demand returns to the market.

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