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CoinsKid Liquidity Dance

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The CoinsKid Liquidity Dance indicator analyzes systemic liquidity, represented by the Liquidity Dance (white line). This metric exhibits a strong inverse correlation with Bitcoin’s price movements.

A sharp decline in the Liquidity Dance following a spike suggests that liquidity is re-entering the financial system, fostering an environment conducive to investment. This influx of capital is typically bullish for Bitcoin and the broader crypto market, as increased liquidity often translates into upward price momentum.

On a macro level, the Liquidity Dance consistently demonstrates an inverse relationship with cryptocurrency markets, providing valuable insights into potential market trends.

Use Cases

Crypto Traders: Identify liquidity-driven bullish and bearish phases in Bitcoin and altcoins.
Stock Market Investors: Assess broader liquidity conditions affecting equity markets.
Macro Analysts: Monitor the FED Liquidity trends to anticipate financial cycles.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.