How to read a crypto liquidation heatmap
A crypto liquidation heatmap shows price levels where leveraged crypto positions may be force closed; check the exchange, contract, colors, and time frame.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20263 min readFact-checked
On this page
- Check which exchange and contract the map covers.
- Brighter colors and larger clusters mark bigger concentrations.
- A short time frame keeps recent clusters visible.
A heatmap does not tell you where price is going. It shows where a lot of leveraged positions sit.
What to know before you start
Heatmaps cover specific markets, not the whole crypto market. One map may show a single exchange and contract, such as a perpetual future, while another blends several exchanges. Each exchange reports its own figures, so the same level can look different on two maps.
How to read the heatmap step by step
Colors and clusters are the map's language. Both are ranges, not exact levels.
- 1Read the color scaleBrighter colors usually mark a larger concentration. Check the legend first, since some maps invert the scale.
- 2Compare cluster sizeA wider or taller cluster suggests more positions than a small one. Read brightness and size together.
- 3Check the time frameA short window keeps recent clusters on screen. A longer window blends them with older ones.
- 4Separate recent from olderRecent clusters are more likely to reflect leverage still open. Older clusters may already be cleared.
- 5Treat clusters as estimatesA heatmap estimates where positions could be liquidated, not exact exchange orders.
What to do after reading it
Write down what you saw so you can compare the map on another day. Note the exchange, contract, and time frame you used.
Frequently asked questions
No. An order book lists orders at exact prices, while a heatmap draws estimated zones.
Providers use different methods. Some estimate from open interest; others use exchange liquidation feeds.
Most show forced liquidations, which come from leverage. Stop-loss orders usually stay hidden until they trigger.
It varies. Some redraw often and others refresh on a delay, so check the timestamp.
