liquidation-heatmap

Liquidation heatmaps identify price levels hosting concentrated long or short liquidations, revealing where leveraged positions create magnets that pull price and where forced selling triggers volatile cascade events.

Leverage cascade risk emerges when forced liquidations sequentially trigger stacked leveraged clusters within a few percent, creating volatile price cascades identifiable by analyzing liquidation cluster magnitude and spacing.

Analyze liquidation heatmaps to rank concentrated leveraged clusters by aggregate volume and magnitude, identifying the strongest magnet levels where BTC or ETH price tends to be drawn before executing macro trades.

Post-liquidation signals convert wipeout zones into support or resistance levels by tagging cleared leveraged cluster areas, allowing traders to define high-priority price zones for adjusting leverage in future trades.

Assess liquidation cluster risk by evaluating stacked levels within a few percent of your entry, comparing magnet versus cascade assessments, and reviewing aggregate liquidation volume across exchanges to calibrate leverage appropriately.