BTC Liquidation Map Explained: What is it? Why is it important?
The liquidation map (Liquidation Heatmap) is a key tool for observing the risk in the BTC contract market. It uses color to show the potential concentration of liquidations at different price levels: the deeper the color, the more leveraged positions are piled up, and once triggered, it could lead to a chain reaction of liquidations, amplifying market fluctuations.
1. What can the liquidation map show?
Upper hot zone = Concentration point for short liquidations
Once the price breaks through, a large number of shorts will be forced to buy, pushing the market up.
Lower hot zone = Concentration point for long liquidations
If the price drops to these areas, longs will be forced to sell, possibly accelerating the decline.
The larger and brighter the hot zone = the higher the risk
It can easily become a price “magnet point” and is often quickly filled.
2. The impact of the liquidation map on the market
Drives short-term volatility: The forced buying and selling caused by liquidations will quickly amplify price movements.
Forms key price levels: Hot zones often become short-term support or resistance levels.
Reflects market sentiment: A concentration of hot zones at the top indicates many shorts; a concentration at the bottom indicates accumulation of longs.
3. How to use it in practice?
Avoid opening positions in hot zones to reduce the risk of getting stopped out or forced to take over.
Combine with funding rates / OI / trading volume to assess whether liquidation risks will actually be triggered.
Market movements near hot zones are generally more volatile, making them a key focus for short-term traders.
4. The liquidation map is not used to predict price movements
Its core value is:
To tell you “where is most dangerous,” rather than “whether it will go up or down.”
It functions more like a “market radar,” helping you identify potential risk points.
BTC Liquidation Map Brief Review (with chart)
From the latest liquidation heatmap:
The lower 88k–89k is the densest area for long liquidations; breaking below here will trigger more long liquidations, leaning short-term risk downwards.
The upper 94k–96k is a dense area for short liquidations, with clear resistance here, a breakthrough will trigger short liquidations and push the price up.
The middle 90k–92k is mostly a consolidation zone, with price testing back and forth but not forming clear support/resistance.
Summary: The lower risk concentration area is more pronounced, leaning weak short-term; if it wants to strengthen, it needs to re-establish above the upper hot zone and trigger short liquidations. $BTC
