liquidation-heatmap

A liquidation heatmap visualizes the concentration of leveraged positions across price levels. Liquidation clusters act as magnets, attracting price because forced buying or selling accelerates market moves and benefits market makers.

You identify liquidation clusters by quantifying liquidation price levels across open interest and leverage distributions. This analysis models cluster magnitudes to forecast magnet zones and cascade risk in futures markets.

Liquidation cascades trigger forced selling or buying that accelerates price moves. Identifying these clustered zones helps inform risk management by anticipating where price will be attracted during volatile market conditions.

Yes, you can use liquidation heatmaps to time entries and exits for BTC futures. By visualizing cluster concentrations, you can identify potential magnet zones and avoid areas with high cascade risk.

Mapping leverage distributions requires open interest data and leverage ratios for long and short positions. The Skill models these inputs to calculate liquidation distances and quantify cluster magnitudes.