$BTC

How to read the liquidation map and understand where the market will move

Section: how the market maker thinks. Issue 1

Investors, I promised you a guide — I keep my word.

Let's analyze how to read the liquidation map from Coinglass to understand: where the crowd's weak spots are and where it is most profitable for the market maker to strike.

1. What are you even looking at?

The liquidation map (Liquidation Heatmap) displays the levels where open positions with leverage are located.

When the price reaches these levels — traders are liquidated, and the market maker receives a premium.

It's like seeing where the landmines are laid on the field. Only here — these are money traps.

2. How to interpret the levels?

• The brighter the level — the more liquidations

This means that in this area, the crowd is holding open shorts or leveraged longs.

• Yellow / orange above the current price

→ there are many shorts.

If the price goes up — they get liquidated.

• Yellow / orange below the current price

→ there are many longs.

If the price goes down — liquidations in longs.

3. The logic of the market maker

He does not play against the crowd. He makes money off of it.

What does this mean?

— If a lot of shorts accumulate at the top → it is more profitable to give a sharp upward impulse to collect liquidity.