$BTC

This heat map reveals the main price zones where leveraged traders are likely to be liquidated: areas where long or short positions may be wiped out if the price moves sharply.

This is not necessarily a case of actions seeking stops, but rather a natural behavior of price dynamics. Still, some clusters may reflect insider trading or collective positioning, especially in previous cycles.

– Main idea:

Leverage does not always push the price up or down, but rather pressures it. When many traders are over-leveraged in one direction, the price usually loses strength to continue the trend, but gains momentum to move against them.

It is important to note that trend reversals can occur abruptly, leaving strong liquidation zones behind without being hit. Indicators such as Volatility, Funding Rate, Open Interest, among others, help identify these moments of change, differentiating a simple correction from a possible structural reversal.