A Twitter follower asked a great question about how and when BTC liquidity shows up in FireCharts. Since I couldn’t answer it in 140 characters, I thought it would be helpful to show how we bin Bitcoin historical order book data in different timeframes to help charts load faster.
Here’s a direct link to the question… https://twitter.com/crearepluris/stat… and here is the Tweet they were responding to… https://twitter.com/MI_Algos/status/1…
In this video I will explain how and when liquidity shows up in FireCharts and how historical data is binned and managed. But first, let’s give it some context… FireCharts currently supports all BTC and USDT pairs on Binance. FireCharts 2.0 (beta) has up to 3 years of order book history for BTC and USDT coin pairs that have been on Binance that long. The exception to that is Bitcoin. We’ve been aggregating full order book depth of BTC since November 2020, so we are building up to 3 years as we go. As you can imagine, managing this depth of data and this much history takes a lot of processing power. To reduce the weight of that lift on our servers and make the charts load faster, we bin the historical data, but we do so differently in each time frame. The historical data on the 3 Year chart is binned into 1 week columns, the 1 Year chart is binned into 3 day columns, 6 month chart is binned into 2 day columns, while the 1 Day, 1 Week an 1 Month charts all show intraday history. Regardless of what time frame you are looking at new liquidity will appear on the far right side of the chart. Depending on the amount that comes in or is removed relative to what is already on the chart, you may not visually see another $2M added to a $30M bin of liquidity that spans a $1000 price range on a 3 Year chart because it may not be enough to change the color scaling, but the $ value would be seen using the price data tool. To see the liquidity movement at a more granular level you would use view the lower time frame charts where you would almost certainly see liquidity added or removed. The exception to that would be if liquidity was added and then pulled in seconds. Hope that helps.
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