How do you monitor liquidity instead of just looking at charts?
Most traders focus solely on price action (⬆️⬇️), but whales and large institutions monitor something more important:
👉 Liquidity.
1. What is liquidity?
It is the amount of money or orders (buy/sell) in the market. The higher the liquidity, the easier it is to enter and exit trades without significantly moving the price.
2. Why monitor it?
•It reveals where whale orders are positioned.
•It helps you understand whether price action is supported by real capital or just weak speculation.
•It can identify fishing zones (liquidity pools) where the price often retreats.
3. Tools to monitor liquidity.
•CoinGlass – Liquidation Heatmap
•Binance Order Book / Depth
•Arkham / Coinalyze
4. How do you use it practically?
• If you see an area full of buy/sell orders, the price is likely attracted to it.
• If the price rises without sufficient liquidity, the movement is weak and may reverse.
• If the price falls with strong liquidity, the decline is supported, and you need to be careful.