The left side of the current price is the long liquidation position and the right side of the current price is the short liquidation position $BTC $ETH
The closer the position is to the current price and the larger the volume, the easier it is to be liquidated (generally, these positions are most likely to be highly leveraged positions of retail investors)
Vernacular conclusion: In the short term, there may be downward pin liquidation and the behavior of highly leveraged bulls
In addition, you can take some notes:
Liquidation maps or liquidation maps (aka liq maps) provide a visual chart of liquidations by traders in the futures crypto market. It only shows liquidations that are predicted to take place based on previous price action.
Traders who trade on unregulated cryptocurrency derivatives exchanges are exposed to additional risks at all times, and that is liquidation (liquidation) risk. When the liquidation price of a trader's position is triggered, his position will be forcibly closed by the exchange's risk engine.
When a small number of positions are liquidated, the impact on the market is small, but if thousands of positions have liquidation prices close to each other, if these orders are liquidated, the impact on the market price will be huge. More importantly, the market buying and selling caused when certain positions are liquidated will push the price forward rapidly, causing more nearby positions to be liquidated, forming a terrible "chain reaction" and leading to large price fluctuations (this It is also an entry method that institutions like to use, because releasing huge liquidity in a short period of time can meet the entry needs of institutions for large orders).
Different combinations of leverage and time frames depict several liquidation clusters. The denser and taller the liquidation cluster, the greater the impact on price action when it arrives.
- Breakout trading
- Profitable scalping trading
- Precisely place stop loss points to prevent being hunted by stop loss
- Take profits in areas of high liquidity
- Optimize the execution of large positions, find liquidity and avoid unnecessary slippage
- Understand when prices move and subside quickly
