Crypto Liquidation Heatmap

What is a crypto liquidation heatmap?

A liquidation heatmap is a day-by-price-band grid showing where leveraged BTC and ETH positions were actually force-closed (liquidated) over a recent window. Each cell’s brightness reflects the notional value liquidated at that price level on that day, built from real exchange liquidation prints rather than a modeled forecast of future clusters.

Where does the liquidation data come from?

This heatmap is built entirely from real OKX and Bybit liquidation prints already captured by Liquid State’s Edge tape — observed, executed liquidation events, not an estimate derived from open interest or funding data.

Do liquidation clusters predict where price will go next?

No. This grid shows where leveraged positions were liquidated historically — it is a record of what already happened, not a prediction of future price levels or clusters. Past liquidation density at a price band does not guarantee similar activity will recur there. Educational data, not financial advice.

What is the difference between long and short liquidations on the heatmap?

A long liquidation occurs when a leveraged bet on rising prices is force-closed as price falls through the trader’s liquidation level; a short liquidation occurs when a leveraged bet on falling prices is force-closed as price rises. The heatmap’s stats row and per-cell tooltip both break out the long/short notional split for each price band and day.

What is a crypto liquidation heatmap?

A liquidation heatmap is a visualisation of the price levels where leveraged positions would be forcibly closed by an exchange. Brighter regions indicate a greater concentration of estimated liquidation levels. It is used to see where forced selling or forced buying could cluster if price reaches those areas.

What causes a liquidation cascade?

A liquidation cascade occurs when price reaches a level where many leveraged positions are closed at once, and those forced market orders push price further in the same direction, triggering the next cluster of liquidations. The mechanism is self-reinforcing, which is why cascades tend to move price faster and further than the initiating move alone would suggest.

Are liquidation levels a prediction of where price will go?

No. A liquidation map describes where leverage currently sits, not where price is headed. Clusters are estimated from public open interest and typical leverage assumptions rather than observed directly, so they are an approximation of market structure. Price frequently does not reach a visible cluster at all.