📚 Crypto Learning Series – Part 65
🔥 What Does the Liquidation Heatmap Tell You?
In the futures market, every trader should watch an important thing:
Where are there excessively Longs or Shorts at risk of liquidation?
The Liquidation Heatmap highlights the areas on the chart where potential liquidation clusters may form.
🟢 Heavy Long liquidation zone below the price
→ There may be an area of liquidity below.
🔴 Heavy Short liquidation zone above the price
→ There may be an area of liquidity above.
💡 Sometimes the market moves toward crowded areas, but it’s not necessary that the price will always hit every liquidation zone.
📌 Remember
✅ Heatmap = Potential liquidation zones
✅ Crowded positions = Higher risk
✅ Look at Price + OI + Liquidity together
🧠 Simple Rule
"Where positions are crowded, the risk may also increase."
🔑 Golden Rule
"Don’t target the liquidation zones—understand the context."
#LiquidationHeatmap #FuturesTrading #liquidity #BTC #BinanceSquare $BTC
🔥 What Does the Liquidation Heatmap Tell You?
In the futures market, every trader should watch an important thing:
Where are there excessively Longs or Shorts at risk of liquidation?
The Liquidation Heatmap highlights the areas on the chart where potential liquidation clusters may form.
🟢 Heavy Long liquidation zone below the price
→ There may be an area of liquidity below.
🔴 Heavy Short liquidation zone above the price
→ There may be an area of liquidity above.
💡 Sometimes the market moves toward crowded areas, but it’s not necessary that the price will always hit every liquidation zone.
📌 Remember
✅ Heatmap = Potential liquidation zones
✅ Crowded positions = Higher risk
✅ Look at Price + OI + Liquidity together
🧠 Simple Rule
"Where positions are crowded, the risk may also increase."
🔑 Golden Rule
"Don’t target the liquidation zones—understand the context."
#LiquidationHeatmap #FuturesTrading #liquidity #BTC #BinanceSquare $BTC