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How to Read a Liquidation Heatmap

By vectison.com · Published July 2026 · Updated July 2026

A liquidation heatmap maps the price levels where leveraged positions are likely to get force-closed. Bright bands are clusters of probable liquidations — pools of forced orders that tend to act like magnets for price.

What the colors mean

The map is price on one axis and time on the other. Brighter, hotter zones mark price levels where a lot of leverage would get liquidated if price reached them. Longs get liquidated below the current price; shorts get liquidated above it. So a hot band beneath price is stacked long liquidations; a hot band above is stacked shorts.

Why clusters pull price

A liquidation isn't a normal exit — it's a forced market order the exchange fires to close a losing position. A cluster is therefore a pool of pending forced orders: forced selling below, forced buying above. That's liquidity, and price tends to seek liquidity. When a move reaches a cluster it often accelerates as those liquidations cascade, then stalls once the pool is drained.

The leverage tiers

Positions at different leverage get liquidated at different distances from entry — a 100x long dies on a ~1% move, a 10x long survives to ~10%. A good heatmap separates these tiers so you can see the near, tightly-packed 100x zones versus the wider 10x–25x zones that need a much bigger move to trigger.

What it can't tell you

It's an estimate built from open interest and typical leverage, not a feed of every trader's real stop. It won't tell you timing or direction — only where a move would find fuel. Read it as a map of where volatility could accelerate, never as a price target.

See the estimated liquidation clusters across price and time, by leverage tier — see the live data →

FAQ

Are liquidation heatmaps accurate?

They're estimates, not exchange-reported facts. Exchanges don't publish every trader's liquidation price, so a heatmap infers likely liquidation levels from open interest and common leverage tiers (10x, 25x, 50x, 100x). Treat the bright zones as areas of probable liquidity, not guarantees.

Why does price move toward liquidation clusters?

A cluster of long liquidations below price is a pool of forced sell orders; a cluster of shorts above is a pool of forced buys. Those forced orders are liquidity, and markets tend to gravitate toward liquidity. Big players are also aware of these zones, which can turn them into magnets.

Does a bright zone mean price will definitely go there?

No. It marks where a move would find fuel if it got there — not a prediction that it will. Use it to understand where volatility could accelerate, not as a target.

Educational content only — not investment advice, and no buy or sell signals. Data comes from public exchange APIs and may be delayed or estimated.