Cryptocurrency Q&A How to read a liquidation heatmap?

How to read a liquidation heatmap?

CryptoPioneerGuard CryptoPioneerGuard Tue Dec 31 2024 | 7 answers 1158
I'm trying to understand how to interpret a liquidation heatmap. I want to know what information it provides and how I can use it to make better trading decisions. How to read a liquidation heatmap?

7 answers

Daniele Daniele Thu Jan 02 2025
The heatmap displays estimated liquidation levels at various prices.

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DigitalDynastyQueen DigitalDynastyQueen Thu Jan 02 2025
As these levels increase for a specific price, the colors on the heatmap alter accordingly.

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Riccardo Riccardo Thu Jan 02 2025
The color spectrum on the heatmap varies from purple to yellow.

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MoonlitCharm MoonlitCharm Thu Jan 02 2025
Purple signifies a lower number of predicted liquidation levels.

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Riccardo Riccardo Wed Jan 01 2025
Conversely, yellow indicates a high concentration of estimated liquidation levels.

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