Here is an explanation of the concept of liquidity without complication. I will give an example. If the price of the currency = 1850 and the liquidity volume = 100, then the currency will rise and the price of the currency will become = 4500, and investors will take their profits along this increase with variance, and the liquidity volume becomes = 30. This means that the liquidity is weak and the price must drop because there is no money. In this case, you will find investors placing buy orders at a certain location, which may be around the previous price, for the chart to forcibly take this liquidity unless some big investors intervene directly and force the market to rise. Therefore, liquidity must be monitored continuously. As shown in the picture. If you have completed reading, support me with a like and a comment and follow me. And don't forget to visit my page regularly for benefits. #BinanceAlphaPoints #TariffPause #BinanceHODLerSIGN #BTCvsMarkets #INitOnBinance
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content.See T&Cs.
