Liquidity Flow Index - Rate of Change
12-Month and 3-Month Rate of Change analysis based on the Liquidity Flow Index. This analysis shows momentum shifts in global liquidity conditions alongside Bitcoin price movements.
About This Analysis
12-Month Rate of Change (Orange)
- 365-day rate of change calculation
- Scale factor: 0.1 (dampening for long-term trends)
- 63-day SMA smoothing
- Shows long-term liquidity momentum
3-Month Rate of Change (Black)
- 90-day rate of change calculation
- Scale factor: 1.1 (amplification for short-term moves)
- 56-day SMA smoothing
- Shows short-term liquidity momentum
Interpretation
When the 3-Month RoC crosses above the 12-Month RoC, it typically indicates accelerating short-term liquidity momentum. Conversely, when the 3-Month RoC falls below the 12-Month RoC, it may signal decelerating momentum. The Bitcoin price line provides context for how these liquidity shifts correlate with crypto market performance.