liquidation-heatmap

To identify liquidation clusters, analyze the distribution of leveraged liquidations to pinpoint price zones where forced selling accelerates moves. This reveals high leverage concentrations to help anticipate support/resistance and gauge risk around hotspots.

A liquidation heatmap visualizes clusters of leveraged positions to infer magnets and cascade risk. It highlights where high leverage concentrates across long and short positions, showing potential paths for cascading liquidations.

Use open interest shifts alongside liquidation data and current price levels to generate actionable trading signals. This combination produces magnet signals, cascade risk assessments, and post-liquidation support/resistance levels for crypto futures.

Yes, you can apply liquidation analysis to crypto futures and cross-exchange data. It requires access to open interest and liquidation data to compute liquidation levels across long and short positions for actionable risk assessments.

The best way to assess risk around high leverage hotspots is to analyze cluster magnitudes and open interest shifts. This reveals where forced selling accelerates moves, informing hedging strategies for leveraged assets like BTC with 10x leverage.

You need open interest data because it provides the necessary context for model assumptions and cluster magnitude calculations. Without open interest shifts, accurate liquidation mechanics interpretation and post-liquidation S/R level generation are not possible.