Bitcoin Liquidation Heatmap
24h Liquidations
Long/Short Ratio
Largest Liquidation
Open Interest
Understanding the Liquidation Heatmap
The liquidation heatmap visualizes the concentration of leveraged positions across different price levels. Brighter areas indicate higher liquidation volumes, which often act as support or resistance levels. When price approaches these levels, liquidations can trigger cascading effects, leading to increased volatility.
Frequently Asked Questions
What is a liquidation heatmap?
A liquidation heatmap is a visual representation of where leveraged positions will be forcefully closed (liquidated) at different price levels. It helps traders identify potential support and resistance zones based on the concentration of leveraged positions.
How do I read the heatmap?
Brighter colors (yellow to red) indicate higher concentrations of liquidations at those price levels. Darker colors (blue to green) show fewer liquidations. The current price is marked with a line, and you can hover over the chart to see specific liquidation values.
Why are liquidation levels important?
Liquidation levels often act as magnets for price action. Large liquidation clusters can cause rapid price movements when triggered, leading to liquidation cascades. Traders use this information to anticipate potential volatility and plan their entries and exits.
How accurate is the data?
The heatmap shows estimated liquidation levels based on common leverage ratios and current open interest. While it provides valuable insights, actual liquidations depend on individual position sizes, leverage, and market conditions.
What causes liquidation cascades?
When price moves trigger multiple liquidations at similar levels, the forced selling (for longs) or buying (for shorts) can push the price further in the same direction, triggering more liquidations. This domino effect is called a liquidation cascade.
Trading Tips
- 📊 Use liquidation levels as additional confluence for support/resistance analysis
- ⚠️ Be cautious when price approaches large liquidation clusters
- 📈 Consider reduced leverage during high volatility periods
- 🎯 Set stop losses beyond major liquidation zones to avoid cascades
- ⏰ Monitor multiple timeframes for a complete picture