What is Liquidation Heatmap in Crypto Trading? A Complete Guide for Traders

Jakarta, Pintu News – In the highly volatile world of crypto, understanding where the market is heading is key. One tool that has become popular among professional traders is the liquidation heatmap.

Liquidation heatmaps help reveal potential price points where many traders’ positions could be liquidated. In other words, it’s a visual tool that shows where the biggest “mines” in the market are – and can be an important clue to your entry and exit strategies.

1. What is Liquidation Heatmap?

Liquidation heatmaps are visual representations of price areas where highly leveraged positions are most likely to be liquidated. The tool displays areas of liquidation risk concentration based on volume, leverage and open interest data from various exchanges.

In CoinGlass, this map is displayed in graduating colors-from purple (low intensity) to bright yellow (high intensity). The bright yellow color signifies magnetic zones, which are price areas with a concentration of positions that are at high risk of liquidation.

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2. How Liquidation Heatmap Works

Heatmaps calculate the liquidation risk at each price level based on:

• Total open interest
• Trader’s leverage level
• Trading volume

This data is then visualized based on specific time frames, such as 12 hours, 24 hours, 7 days, up to 1 year. Traders can choose the time frame that suits their strategy, whether for scalping or swing trading.

3. Why is Liquidation Heatmap Important?

Liquidation heatmaps can be used for:

• Predict price movement towards areas with high liquidation risk.
• Avoid personal liquidation by adjusting positions before the price hits the risk zone.
• Capture trading opportunities during mass liquidations that are often followed by sharp price movements.
• Identify “whale” action as large traders usually utilize this zone to execute their strategies.

4. How to Use Heatmaps in Trading

Here are the practical steps:

1. Open CoinGlass and select the “Liquidation Heatmap” tab.
2. Choose an appropriatetime frame (e.g. 24 hours).
3. Observe the bright yellow area-that’s the zone with high liquidation risk.
4. Notice whether the price is approaching or moving away from that area.
5. Use this information to specify

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5. Magnetic Zone Concept

Magnetic zones are price areas where many open positions are located. Due to liquidation pressure, prices tend to be “attracted” to this zone. It can be used as an additional indicator of short-term market direction.

6. Tips and Strategies

• Combine it with other technical indicators such as RSI, EMA, and volume.
• Check market depth and open interest data for additional confirmation.
• Use heatmaps as a risk management tool, not the only indicator.

Conclusion

Liquidation heatmaps are powerful tools for analyzing market sentiment and identifying crucial points that can trigger major price movements. By understanding how heatmaps work, traders can improve the accuracy of their analysis, avoid the risk of liquidation, and even ride the momentum of a mass liquidation.

Also Read: A Complete Guide to Saving Digital Gold in 2025 – Simple, Safe, Can Start from Rp11,000!

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

FAQ: Liquidation Heatmap in Trading

What is liquidation in crypto?

Liquidation is the forced closing of a leveraged position when there is insufficient margin due to price movements.

What is the function of a liquidation heatmap?

Heatmaps show price areas with a high concentration of potentially liquidated positions. This helps traders avoid risks and capitalize on opportunities.

What is a magnetic zone?

Magnetic zones are areas on the heatmap where prices tend to be attracted due to the concentration of highly leveraged positions.

Are heatmaps suitable for all traders?

Yes. For both day traders and long-term investors, heatmaps can be customized based on the chosen time frame.

Where can I use this tool?

You can access the liquidation heatmap for free on CoinGlass.com.

Reference:

• CoinGlass. How to use Liquidation Heatmaps to assist trading? Accessed November 25, 2025