Liquidity Heatmap
It shows the current market leveraged positions and the estimated liquidation levels when the market reaches a certain price level.
Liquidity Heat Map (Model-2)
What is Liquidity Heatmap?
The Liquidity Heatmap is a tool that helps investors track critical price levels by visualizing the concentration of buy and sell orders in the market using colors. This map clearly shows where orders have accumulated at different price levels within a specific time frame. In this way, it becomes possible to see which levels may form strong support or resistance in the market.
On this page, you can find liquidity heatmaps for selected assets, primarily Bitcoin. The maps display price levels on the vertical axis and time on the horizontal axis. The color scale represents order density: red and orange tones indicate high order clusters, while blue and purple tones indicate low density. With these visualizations, users can monitor in real time at which levels market participants are preparing to buy or sell.
The liquidity heatmap is particularly critical for identifying points where leveraged positions are concentrated and potential liquidation levels emerge. For example, a high concentration of orders within a certain price range indicates that this area could act as a strong barrier for the market. Conversely, weak areas may show levels where the price can break more easily.
With this data, investors can anticipate not only the current market depth but also potential price movement directions and regions where volatility may increase. This provides an important guide for both short-term trading strategies and risk management.