About the Liquidation Map
The liquidation map is a useful tool for cryptocurrency traders to chart and predict price behavior based on leveraged positions and the distribution of long and short positions at different prices. . By quantifying the liquidation intensity of long and short positions, the liquidation map provides a clear view of the price points at which liquidation is likely to occur, helping traders Predict and prepare for potential price fluctuations.
Analyzing Liquidation Maps via Visual Data
Binance/BTCUSDT liquidation map:
by coinank X axis: Represents the bid prices of Bitcoin.
Y axis: Represents the relative strength of liquidation (liquidation intensity).
Liquidation clusters: Colored bars on the chart show the concentration of leveraged positions at different price levels. The denser the cluster, the greater the liquidation intensity.
Peak price: At $65,420, there was a very large cluster of liquidations, suggesting this was the price at which many leveraged positions were liquidated.
BTC liquidation map:
X axis: Represents the bid price of Bitcoin.
Y axis: Represents liquidation power.
Exchanges: Data is taken from exchanges such as Binance, Bybit, and Okex.
Peak price: Also at $65,420, the very large liquidation cluster represents high liquidation intensity at this price level.
Meaning and Application
Breakout Trading: By observing liquidation clusters, traders can scale trades when price breaks out of large liquidation clusters, increasing profit potential.
Setting Stop Losses: Major liquidation points can be an important reference for setting stop losses, helping to protect assets in the event of sharp price fluctuations.
Take profits: Areas with high liquidity (dense liquidation clusters) are reasonable points to take profits and minimize risks.
Avoid slippage: Entering large positions in large liquidation zones helps create liquidity and avoid unnecessary slippage.
Predict Price Movements: Liquidation maps help predict price movements based on liquidation intensity, supporting more effective trading decision making.
Conclude
The liquidation map is a powerful and essential tool for cryptocurrency traders. Using a liquidation map not only helps predict price behavior but also optimizes trading strategies, protects assets and takes advantage of market opportunities effectively. In the context of the highly volatile cryptocurrency market, understanding and applying the liquidation map is an important competitive advantage.
Data on other Derivatives exchanges such as Binance, Okex, bybit....
So when watching, everyone should pay attention to the fact that BTCUSDT on Binance floor is under D1 or W1 frame depending on whether people invest short-term or long-term.
This also increases the probability of holding given figures to take profits and cut losses appropriately to avoid higher losses for investors. But the data also runs behind the price so it's not 100% certain, so we understand the rules of the game created by Shark and Market Marker so small fish like us should know enough or stop at the right time and always cut losses appropriately. Reasoning helps us optimize profits more than many other investors.
As for making profits and avoiding risks, investors need to practice daily, monthly and yearly to help stabilize profits, rather than relying too much on on-chain data and indicators too much. It is obvious that you will lose money or delete your account.
So the advice is to consider your finances carefully before investing in the financial market in general and the Crypto market in particular, which is full of high risks and comes with great profits. DYOR This is not investment advice but on what that I understand and have learned through each stage and year of ups and downs with the market from 2018 to the present. Wishing everyone peace of mind and avoiding risks, keeping money and finances is always the top priority. Only by keeping money can you have the spirit to make money.
GOOD LUCK!