This image depicts a Binance $BTC /USDT Liquidation Heatmap from Coinglass, providing a visualization of liquidations based on price levels over a 24-hour period. Below is an in-depth analysis:
Key Components of the Heatmap:
1. Color Coding:
Purple Shades: Represent lower liquidation activity and leverage concentrations.
Green to Yellow Shades: Indicate higher liquidation activity, with yellow being the most intense regions of liquidation pressure.
2. Price Levels (Y-axis):
The price range for BTC/USDT is shown on the vertical axis, with prominent levels such as $94,000 to $101,000. The clustering of colors at specific levels indicates areas with significant liquidation pressure.
3. Time (X-axis):
The horizontal axis captures the 24-hour timeline, showing how liquidations evolved during this period.
4. Liquidation Leverage and Supercharts:
High leverage zones are highlighted, where traders were either liquidated or at risk due to price fluctuations.
Observations:
1. Key Liquidation Zones:
Significant liquidation occurred around the $98,000 mark, as indicated by the high concentration of yellow bands.
Similarly, at lower levels like $96,000 and $94,000, green bands show increased activity, possibly triggered by long position liquidations.
2. Price Action Overlay:
The $BTC /USDT price movement is plotted, showing a relatively volatile period, with price spikes aligning with liquidation zones.
3. Market Sentiment:
Higher concentrations of liquidations at specific price levels suggest high leverage usage by traders, indicating aggressive speculation during this time frame.
4. Volume Profile:
The bar at the left (48.34M) represents cumulative liquidation volume, showcasing the scale of leverage-based activity in the market.
Implications:
Traders' Behavior:
The heatmap reveals that many traders placed highly leveraged positions at specific levels, leading to cascading liquidations when price volatility breached these zones.