Liquidation Heatmap

Visualize where liquidation levels cluster on a price chart — see where cascades are waiting to happen.

What is Liquidation Heatmap?

Liquidation Heatmap overlays estimated liquidation levels onto a price chart, showing you where leveraged positions are concentrated at specific price points. The heatmap uses color intensity to represent the density of liquidation levels — brighter areas mean more positions would get liquidated if price reaches that level.

When traders open leveraged positions, each position has a liquidation price determined by their entry, leverage, and margin. Liquidation Heatmap aggregates this data across the market to reveal clusters where many positions share similar liquidation prices. These clusters act like magnets — price is often drawn toward large liquidation pools because the forced selling or buying from liquidations creates movement that feeds on itself.

This is one of the most powerful tools for understanding market structure beyond simple support and resistance. Traditional chart levels are based on past price action, but liquidation levels represent real, active positions with real money behind them.

Key Concepts

• Liquidation Cluster: A price zone where many leveraged positions have their liquidation prices — represents high cascade potential
• Heatmap Intensity: Brighter colors indicate higher density of liquidation levels at that price
• Upside Liquidations: Short positions that would be liquidated if price moves up — fuel for upward cascades
• Downside Liquidations: Long positions that would be liquidated if price moves down — fuel for downward cascades

How to Use Liquidation Heatmap

1. Open Liquidation Heatmap from the sidebar under Liquidation Tools
2. Select the trading pair you want to analyze
3. The price chart loads with the heatmap overlay showing liquidation density at various price levels
4. Identify the brightest zones above and below current price — these are the highest-impact liquidation clusters

What to Look For

• Bullish signals: Large short liquidation clusters above current price act as magnets. If price starts moving up toward a cluster, the liquidations can accelerate the move as short covering adds buying pressure.
• Bearish signals: Dense long liquidation clusters below current price suggest a downside target. A move toward these levels can trigger cascading long liquidations that drive price lower.
• Key patterns: Look for asymmetry — if there is significantly more liquidation density on one side, price may be drawn in that direction. Fresh clusters that form quickly indicate new leveraged positioning that has not yet been tested.
• Combine with: Liq. Heatmap & Levels for exact price levels, Liquidation Analytics for timing context, Liquidity Heatmap for order book depth at those same levels

Supported Exchanges

Tips

• The largest liquidation clusters do not guarantee price will reach them — they represent potential, not certainty
• Clusters that have been partially swept (price touched the zone and triggered some liquidations) lose intensity — watch for the heatmap to update after moves
• Combine liquidation clusters with traditional support/resistance levels for the highest-conviction trade ideas