Dark Pools and Hidden Liquidity: What You Need to Know

When you look at the chart on Binance or Coinbase, you're seeing the "Lit" market. But beneath the surface lies the "Dark" market—private exchanges where institutions trade massive blocks of assets anonymously.

Why Dark Pools Exist

If a fund wants to buy 10,000 BTC, doing so on a public exchange would cause price to skyrocket (slippage), ruining their entry price. Dark pools allow them to match with another big seller privately.

Spotting the Footprints

Though the trade is hidden, the effect is not.

1. Price Pinning: Price refuses to drop below a certain level despite heavy selling on Lit markets? A Dark Pool buyer is likely absorbing the liquidity.
2. Volume Anomalies: Massive volume spikes with little price movement often indicate a block trade printing on the tape.

Strategies for Retail

You can't trade in Dark Pools, but you can ride their wake.

• Follow the Whale: When On-Chain Analysis shows massive wallet movements to OTC desks, volatility is incoming.
• Don't fight the floor: If hidden structural support is holding a level, don't short it.

Our Market Analysis algorithms are tuned to detect these subtle liquidity discrepancies.