I would like to share with you a tool that I have been using throughout this year, @coinkarma_. In the volatile market conditions of the past few months, it has clearly provided the top and bottom of the trading range, as well as opportunities for $DOGE and $OM.
Btw, in volatile market conditions, I generally park my funds in their quantitative trading bots on OKX (with Longing/Short Signals).
Coinkarma is overall similar to Tradingview, and I purchased their service due to the following indicators.
1. Liq
A simple understanding of the Liq indicator: it helps us quickly understand the liquidity situation of buyers and sellers in the market.
Liq is divided into four types: Overall Liq, Liq, Accumulated Overall Liq, and Accumulated Liq. Overall looks at the overall market, while individual Liq is used to view a specific Token. The Accumulated indicators describe the cumulative liquidity situation over a specific time period (my settings are 50 -100 100, values above -100/100 turn red/green). The better the cumulative situation, the more buy-side activity, and the worse the cumulative situation, the more sell-side activity.
Let's take the $OM that I previously interacted with as an example, the Liq of $OM is shown in the image below⬇️
From the Liq indicator, starting from October 24, the Liq of $OM has been very good, with a lot of accumulation at the bottom, resulting in three consecutive green segments. After seeing this indicator, the subsequent price increase is not surprising.
Another example is $DOGE ⬇️
Btw, a reminder, the Liq indicator works best in volatile markets and for left-side entries, not so much for one-way markets. It has opened a Token Screener channel on TG, which can quickly help users see which Tokens have better Liq, without the need to check the Liq indicator for each Token individually. I think this is quite user-friendly. For example, $OM and $DOGE, the Token Screener has provided clear data.
Personally, I think if you only look at the Liq of $BTC, you also need to refer to the inflow and outflow of ETFs. (And, as mentioned earlier, Coinkarma has a quantitative trading bot on OKX, and during volatile market conditions, I generally put some of my funds in there for investment, with decent returns)
2. Bitfinex Premium
This indicator shows the premium for trading BTC on Bitfinex, for example, in the 50k-60k range, there were a lot of green bars on Bitfinex. Near the 100k level, there were many red bars, indicating that Traders on Bitfinex were selling. I generally use this indicator to judge tops and bottoms.
3. Bitfinex ETH/BTC Whale Indicator
I generally use this indicator to see the accumulation of ETH/BTC (the ETH/BTC exchange rate) by whales on Bitfinex. Since whales have unlimited ammunition, I generally don't follow them to open long ETH/BTC positions. I think the more meaningful aspect of this indicator is that it can be used to observe when whales unwind their ETH/BTC long positions - once whales unwind, the ETH/BTC exchange rate is very likely to decline.
4. ALT Resilient Index
This indicator is used to look at the strength and weakness of Altcoins, and also has the effect of judging bottoms in volatile markets. The strength and weakness data of Altcoins can help us control our positions in Altcoins. Regarding judging bottoms, we can refer to the wave in August, when five green appeared, the bottom was likely to emerge.
Finally, when I look at Liq, I generally look at the BTC Liq, Overall Liq, and ALT Resilient Index data in volatile markets to judge bottoms and tops, and to buy the dips and sell. There are also many group members in the TG group who share their market views, and Benson also shares some of his operations, especially options trading (from which I can learn a lot). The Bitfinex ETH/BTC Whale Indicator is mainly used to look at the short-term relative strength of Ethereum compared to Bitcoin. I generally don't follow whales when they buy the dips, but when they sell, I will follow some operations. The Bitfinex Premium is also mainly used to look at Bitcoin.
Regarding the Coinkarma data website, you can also refer to this tweet from @BensonTWN ⬇️
https://x.com/BensonTWN/status/1834531758211289397
Welcome to register Coinkarma using my link ⬇️
https://www.coinkarma.co/en/join/03945936
Thank you for your support🙏
