{"id":24736,"date":"2026-01-06T08:31:31","date_gmt":"2026-01-06T00:31:31","guid":{"rendered":"https:\/\/monsterblockhk.com\/?p=24736"},"modified":"2026-05-04T08:25:50","modified_gmt":"2026-05-04T00:25:50","slug":"coinkarma-indicators","status":"publish","type":"post","link":"https:\/\/monsterblockhk.com\/en\/coinkarma-indicators\/","title":{"rendered":"23 Practical CoinKarma Trading Indicators You Can't Miss! How to master the market from scratch even if you're new to cryptocurrency trading\uff5cCryptocurrency Trading Guide"},"content":{"rendered":"
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The world of cryptocurrencies is full of opportunities, but it also harbors risks. Especially for beginners, learning the right trading metrics is the key to building a solid strategy.<\/span><\/span><\/p>

This article will introduce 23 super useful cryptocurrency indicators in an easy-to-understand way, which not only come from the official data of the professional platform CoinKarma, but also help you understand the market dynamics step by step, starting from technical analysis.<\/span><\/span>Whether you're a newbie or a trading beginner, this article will give you a sensible and practical guide as we explore how these cryptocurrency indicators can become your trading partners!<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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Before we begin, let's clear up a concept:<\/b><\/span><\/span><\/p>

Cryptocurrency indicators are like the pulse of the market, they are based on data analysis and help us determine buying and selling opportunities, risks and trends. But remember, there is no such thing as a perfect indicator, you need to use a combination of them and pay attention to the market conditions!<\/span><\/span><\/p>

To make the content more systematic, I have divided these indicators into six categories, each starting from a basic definition and progressively explaining the logic, uses, and practical applications for novices.<\/b><\/span><\/span><\/p>

This categorization makes it easier for you to grasp the overall framework and avoid confusion.<\/span><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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1. Liquidity Indicators: Capturing Market Depth and Intentionality<\/span><\/font><\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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Liquidity indicators are indispensable tools in cryptocurrency trading, they focus on the balance of buying and selling in the spot order book and help us predict turning points in a volatile market. These indicators are particularly suited to the 90% market hours, a consolidation phase without strong external capital interruptions. Let's look at them one by one.<\/span><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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LIQ<\/span><\/font><\/h3>\t\t\t\t<\/div>\n\t\t\t\t
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Its core definition is a value calculated by standardizing the ratio of buy orders (bid) to sell orders (ask) in the spot order book, which is specifically used to assess the cost of pulling or crashing orders by the majors. The logic behind it is that when the depth of the bid order is thick, the demand for funds for the main force to smash the order will increase, and vice versa, which allows us to explore the potential reversal point of the market, especially in the contractual high-leverage environment, which is often used by the main force to harvest retail investors.<\/span><\/span><\/p>

When LIQ is high (>3), it means that the order book is deeper below and the cost of capital for the main force to smash the order is higher, which is more likely to form a bottom in the oscillator.<\/b><\/span><\/span><\/p>

When LIQ is on the low side (<-3), it means that order book selling is deeper above and the main pulling force has higher capital cost, which is more likely to form a top in the oscillator.<\/b><\/span><\/span><\/p>

In short, LIQ is a way to see the cost of pulling and smashing orders by the main force. When the cost of controlling the price is too high, the market is more likely to take a turn How to use the LIQ Indicator Currency Circle 90%'s market is an oscillator, with a low percentage of unilateral upward and downward movement. When the market is in the wide range of the oscillator, that's when the LIQ indicator is at its most effective.<\/span><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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Overall LIQ<\/span><\/font><\/h3>\t\t\t\t<\/div>\n\t\t\t\t
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This is a market capitalization-weighted overall liquidity indicator that covers a number of mainstream currencies such as BTC, ETH, etc. It is similar in definition to LIQ, but with a broader scope that is not limited to a single market. Its logic is to capture changes in broad market liquidity and provide more sensitive short-term signals, as retail investor behavior tends to magnify imbalances in the overall order book.<\/span><\/span><\/p>

Usage:<\/b><\/span><\/span>LIQ + Overall LIQ: Overall LIQ is more sensitive than LIQ and provides more short-term trading opportunities.<\/b><\/span><\/span><\/p>

The pitfall to avoid is ignoring the timeframe and over-trading on the hourly charts, resulting in noise interference.<\/span><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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Accumulated LIQ<\/span><\/font><\/h3>\t\t\t\t<\/div>\n\t\t\t\t
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Add time accumulation to the LIQ base, defined as the sum of LIQs for a specific period in the past (e.g. 24 hours), with adjustable parameters such as (24, 60, -60). Logically, this enhances trend persistence and avoids false signals at a single point in time, especially useful on 4-hour charts.<\/span><\/span><\/p>

Usage: Treat it as a strict filter and place multiple orders when the accumulation value exceeds 100.<\/b><\/span><\/span><\/p>

A common misconception is that parameters are not tuned, resulting in missed opportunities, which is recommended to be optimized through backtesting.<\/span><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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10% Orderbook DIF<\/span><\/font><\/h3>\t\t\t\t<\/div>\n\t\t\t\t
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Order Book 10% The bid-ask spread within the depth of 10% shows the Notional USD value. The logic is to evaluate absolute liquidity rather than relative values, allowing us to distinguish the true depth difference for the same LIQ.<\/span><\/span><\/p>

Usage:<\/b><\/span><\/span>Using the 10% Orderbook LIQ-Notional USD, it can be seen that for the same LIQ data, buyer liquidity in the yellow box > buyer liquidity in the purple box.<\/b><\/span><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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10% Overall Liquidity<\/span><\/font><\/h3>\t\t\t\t<\/div>\n\t\t\t\t
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Similar to the 10% Orderbook DIF, but focusing on the overall market 10% Orderbook Difference can be displayed in USD or BTC units. Logically, this is an absolute indicator of the liquidity of the market, with a default threshold of 300M USD or 3000 BTC.<\/span><\/span><\/p>

Usage: Use it as a confirmation tool to reinforce long confidence when the buy side exceeds the threshold.<\/b><\/span><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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CVD (Cumulative Volume Delta)<\/span><\/font><\/h3>\t\t\t\t<\/div>\n\t\t\t\t
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The CVD is an indicator used to analyze the balance of power in a market, which accumulates the difference in volume between buy and sell orders over a certain period of time. In short, CVD can be regarded as a representation of the buying and selling power of market orders over a period of time.<\/span><\/span><\/p>

For LIQ, it is based on the bid and ask of the spot order book, which is composed of \"limit orders\". When the strength of the \"market orders\" continues to push in a certain direction during a period of time, it is possible that most of the \"limit orders\" are consumed at the same time, which will result in an overstretching of the LIQ related data. To avoid overstretching, we can use CVD to filter this situation.<\/span><\/span><\/p>

Usage: Filter LIQ red bars with CVD up to avoid shorting too early.<\/b><\/p>

Here is an example: Excessive extension of Overall LIQ red bars. The yellow box shows frequent Overall LIQ red bars, but the price is hitting highs repeatedly, and we observe the CVD, we can see that the buying in this period is very intense, which causes many sell orders (ask) \"limit orders\" to be consumed, resulting in an excessive extension of the Overall LIQ. Therefore, we can observe the CVD to filter out the short option.<\/span><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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USDC\/USDT Premium<\/span><\/font><\/h3>\t\t\t\t<\/div>\n\t\t\t\t
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An indicator that measures the spread between USDC and USDT. Although both are pegged to USD1, in actual trading, the price will be at a discount or premium due to the difference in market demand and capital pressure, and the price difference between the two can be used to determine the direction of short-term capital flow and market pressure, which has a high correlation with the short-term price fluctuations of BTC.<\/span><\/p>

In the absence of external incremental capital, the market is mainly dominated by existing capital circulating within the market, and USDT is the main settlement unit of the cryptocurrency market as a whole, and its transaction volume and depth account for a much larger share than that of USDC in the long term, so BTC\/USDT versus BTC\/USDC is the former's benchmark price that really determines the direction of the price in the short term.<\/span><\/p>

Therefore, when the main force has an incentive to sell BTC in the short term, it will start with BTC\/USDT, which has higher liquidity, and this will result in the phenomenon of BTC\/USDT < BTC\/USDC, as the former is actively under pressure (the opposite is true for buying), and then the arbitrage space will appear. Arbitrage capital will buy lower priced BTC in BTC\/USDT, sell higher priced BTC in BTC\/USDC, and then sell the acquired USDC back into USDT to complete the arbitrage, so when the USDC\/USDT Premium goes below 0, it usually means that the main capital driving the market is selling BTC.<\/span><\/p>

Usage: When Premium < 0, arbitrage behavior suggests selling pressure. Beginners can use < 0 as a signal to reduce short-term top positions.<\/b><\/p>

Misunderstandings fail when external capital is flowing in and market conditions need to be recognized.<\/span><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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2. Smart Money Indicator: Following the Giant Whales and Organizations<\/span><\/font><\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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Smart Money Indicators track the behavior of majors and institutions, helping us to capture the information advantage, especially at the turning point. These indicators are suitable for use during bearish and bullish periods, so that novice traders can learn to \"follow the market\" instead of blindly following.<\/span><\/span><\/p>

Bitfinex is an exchange with a long history. Bitfinex is part of iFinex, which is also the parent company of Tether, the largest stablecoin issuer by market capitalization. After years of observation by the CoinKarma team, they found that the giant whales on Bitfinex have a huge impact on the market, and therefore developed several indicators to track the behavior of these whales to determine how the market is perceived by smart money. CoinKarma has developed a number of indicators to track the behavior of the giant whales to determine how the smart money in the market perceives the current market conditions.<\/span><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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Bitfinex BTCUSD LONGS<\/span><\/font><\/h3>\t\t\t\t<\/div>\n\t\t\t\t
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Defined as the total leveraged position of BTC spot on Bitfinex. The logic lies in the fact that the giant whale often builds its position against the trend, sucking in chips when it goes down and getting out when it goes up.<\/span><\/span><\/p>

Usage: Observe the position increase to a certain level and follow through to the bottom.<\/b><\/span><\/span><\/p>

The misunderstanding is that the initial motion is regarded as the bottom, and the actual acceleration needs to be equal to the slope.<\/span><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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Bitfinex Margin Long Size<\/span><\/font><\/h3>\t\t\t\t<\/div>\n\t\t\t\t
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Bitfinex Exchange Leveraged USD+USDT Position Size, the higher the indicator, the larger the position size of the giant whale's leveraged borrowing. Since Bitfinex's spot leverage is mostly in BTC, the trend of this indicator is highly similar to the BTCUSD LONGS, although the sensitivity is higher than that of the BTCUSD LONGS.<\/span><\/span><\/p>

Usage: Use it to confirm the LONGS signal.<\/b><\/p>

The pothole is in ignoring the position cycle, which is of limited help in the short term.<\/span><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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Bitfinex Premium<\/span><\/font><\/h3>\t\t\t\t<\/div>\n\t\t\t\t
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Bitfinex-BTCUSD vs Coinbase-BTCUSD premium\/discount relationship, when the market sentiment is low and the giant whale enters the market to build up its position on the left side, it will cause Bitfinex BTCUSD to have a premium price compared to Coinbase; on the contrary, when the market sentiment is high and the giant whale is slowly exiting, it will cause Bitfinex BTCUSD to have a premium price compared to Coinbase. Coinbase discount, when the indicator exceeds the threshold, it is often the bottom or top of the range.<\/span><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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Bitfinex ETH\/BTC Whale Indicator<\/span><\/font><\/h3>\t\t\t\t<\/div>\n\t\t\t\t
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Bitfinex ETHBTC Net Longs leverage position. When this indicator is higher, it means that Giant Whale Leverage has a higher position to buy ETH with BTC.<\/span><\/span>\u3002<\/span><\/p>

The following is the comparison of ETHBTC exchange rate after Bitfinex closed its large ETHBTC Longs position. It can be found that after Bitfinex closed its position, the ETHBTC exchange rate has a higher chance of hitting the peak, and it is a safer choice to transfer from ETH to BTC at this time.<\/span><\/span><\/p>

Usage: Consider switching from ETH to BTC after an indicative high.<\/b><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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CME Smart Money<\/span><\/font><\/h3>\t\t\t\t<\/div>\n\t\t\t\t
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There are some giant whales in the market whose positions can influence the market to a certain extent because when they are willing to buy, they bring buy-side support to the market. In addition to this, information gaps have always been one of the fundamentals of making money in the market, and watching whales that have the opportunity to have information gaps will give us a chance to discern what the market is likely to do in the future.<\/span><\/span><\/p>

CME Smart Money is an integrated indicator that screens different types of traders at the CME to select the group whose position changes have an alpha on the trend.<\/span><\/span><\/p>

Whenever CME smart money turns net short, it is usually a phase high; 2024 \/ 10 CME smart money increased its position from 1,800 to 12,000, which is the largest position and increase in data, and then BTC welcomed the unilateral market to break the 100K mark.<\/b><\/span><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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USD\/USDT Interest Rate<\/span><\/font><\/h3>\t\t\t\t<\/div>\n\t\t\t\t
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In addition to the perpetual contracts and funding rates that are unique to the cryptocurrency space, the cryptocurrency space still has borrowing rates that are common in traditional finance. The lending rate is the interest rate generated by spot lending on a centralized exchange. Therefore, there are two key points to analyze: the first is the centralized exchange, and the second is the level of interest rates. The current centralized exchanges are based on Binance, currently the largest exchange in the world, and Bitfinex, the oldest exchange known for lending.<\/span><\/span><\/p>

This is a more cyclical indicator. Due to the nature and composition of the two exchanges, we consider Binance's borrowing behavior as retail and Bitfinex's borrowing behavior as primary.<\/span><\/span><\/p>