HOW TO READ A LIQUIDITY MAP?

(also known as limit order heatmap or order book heatmap).

🧠 What is a liquidity map?

It is a visual representation of the order book of a trading pair, such as BTC/USDT, that shows you where the buy and sell orders are located and how much "strength" they have at each price level.

🟠 What do the colors mean?

Brighter or more intense colors (orange, red, yellow):

indicate that there is more liquidity at that price level (more limit orders).

In other words, more people want to buy or sell at that point.

Dark or colorless colors:

Little or no liquidity at that price.

There is no strong interest at that level.

📊 How to interpret it?

1. Resistance zones (sellers)

If you see a bright line above the current price, there are many wanting to sell there.

That acts as resistance: it will be difficult for the price to rise because it will encounter many sell orders.

2. Support zones (buyers)

If you see a bright line below the current price, there are many wanting to buy there.

That acts as support: it will be difficult for the price to fall because it will encounter many buy orders.