#liquidation #LiquidationData

🔥 What is a Liquidation Heat Map?

A liquidation heat map shows where lots of traders might get forced to sell or buy (called “liquidated”) if the price reaches certain levels.

These spots are like pressure points in the market — and they can cause big price moves.

🧠 How to Use It for Trading (Step by Step):
1. Understand the Colors

Bright areas = lots of liquidations waiting to happen
(Many traders have stop-losses or leverage positions there)

Dark areas = fewer liquidations

2. Look for Clusters

Big bright clusters above the current price = many people shorting (they bet price will go down)

Big bright clusters below the current price = many people longing (they bet price will go up)

3. Guess the Likely Price Move

Price often moves toward these clusters to “hunt” stop losses or liquidations.

So if you see a big cluster above current price → price might move up to liquidate shorts.

If you see a big cluster below → price might move down to liquidate longs.

📈 Example:

Current BTC price: $105000

You see a big liquidation cluster at $108,000

This means many short traders will be liquidated at $108,000

Market may try to push price up to that level

So, you might consider a long (buy) trade targeting $108,000

⚠️ Warning:

Don’t rely only on the heat map.

Use it with other tools like support/resistance, RSI, volume, etc.

Heat maps help you guess where price might go, not where it will go.