The image you've provided shows a Binance $BTC /USDT Liquidation Map from Coinglass, displaying liquidation data for Bitcoin/USDT perpetual futures contracts. Here’s a detailed breakdown:
1. Current Price:
The current price of $BTC /USDT is marked at $94,565 (red vertical line).
2. Cumulative Liquidation Leverage:
Cumulative Short Liquidation Leverage (green area): Represents the total short positions that will be liquidated if the price increases.
Cumulative Long Liquidation Leverage (red area): Represents the total long positions that will be liquidated if the price decreases.
3. Leverage Levels (Colored Bars):
Bars are color-coded by leverage levels:
10x Leverage (Blue)
25x Leverage (Yellow)
50x Leverage (Orange)
100x Leverage (Red)
These bars indicate the concentration of leveraged positions and potential liquidation levels.
4. Liquidation Clusters:
Below Current Price (Short Liquidations): The green curve rises significantly above $94,000, showing a large volume of short positions.
Above Current Price (Long Liquidations): The red curve declines, indicating reduced long liquidation pressure.
5. Volumes:
The left axis represents the liquidation volume for specific price ranges (in millions).
The right axis shows cumulative liquidation values.
Key Observations:
High Leverage Concentration:
Significant liquidation clusters around $94,000–$96,000 for both long and short positions.
Extreme leverage (100x) dominates in certain price ranges.
Liquidation Risk:
If the price moves sharply above or below $94,565, both long and short positions could face cascading liquidations.
1. Risk Management:
Monitor these levels closely as they may act as pivot points where large liquidations could lead to price volatility.
Avoid placing trades at heavily leveraged price zones.
2. Market Insights:
A price move through liquidation clusters often triggers rapid and exaggerated price movements due to liquidations amplifying the trend.
