Liquidations in Bitcoin (BTC) are events where traders' positions are automatically closed due to a lack of funds to maintain them. This primarily occurs in futures trading and can have a significant impact on the market.
A liquidation map, also known as a "liq map", provides a visual graph of liquidations or the risk of liquidation in the cryptocurrency futures market. This map shows the liquidations that are predicted based on previous price trends. When the liquidation price of a position is triggered, the position is forcibly closed by the exchange's risk engine.
Liquidations can cause rapid price movements, leading to a "cascading effect" where more nearby positions are liquidated. This phenomenon creates substantial fluctuations in prices, which institutional players often exploit as an entry strategy.
You can find more information about BTC liquidations and how they affect the market at [CoinGlass](https://www.coinglass.com/es/pro/futures/LiquidationMap) and [Bitcoin CounterFlow](https://bitcoincounterflow.com/es/zonas-de-liquidacion/).
Would you like to know more about how to protect yourself from liquidations or how to use them to your advantage in trading?
#BinanceMegadropSolv @CZ @Richard Teng @Binance Square Official
