What a liquidation heatmap shows
A liquidation heatmap plots price on one axis and time on the other, and colours each price level by how many leveraged positions are estimated to be liquidated there. Bright bands mark large clusters of estimated liquidations; dark areas mark few.
Because liquidated positions become market orders, those bright bands are places where a move could suddenly accelerate.
How it is estimated
Exchanges do not publish anyone’s liquidation price, so heatmap providers model it. A typical model:
- Watches when and at what price open interest increases, which marks new positions being opened.
- Assumes those positions used a spread of common leverage levels, such as 10×, 25×, 50× and 100×.
- Projects the liquidation price each of those positions would have, and adds them up per price level.
- Removes levels that price has already traded through, since those positions are assumed to be gone.
The result is a probability map, not a list of real orders. Different providers use different assumptions, so their heatmaps will not match exactly.
How to read the bright zones
- Bright band above price: estimated short liquidations. If price rallies into it, forced buying can extend the move.
- Bright band below price: estimated long liquidations. A drop into it can turn into a cascade.
- Bands that keep growing: more leveraged positions are being stacked at similar levels, so the potential fuel is building.
- Bands that disappear: price traded through them and the liquidations were (by the model’s assumption) triggered.
Large clusters often act like magnets: price is drawn toward them, liquidates them, and then reverses, because the forced orders are used up. This is the same mechanism as a liquidity sweep.
Liquidation heatmap vs liquidity heatmap
| Liquidation heatmap | Liquidity (order book) heatmap | |
|---|---|---|
| Shows | Estimated forced closes of leveraged positions | Real resting limit orders in the order book |
| Source | A model based on open interest and assumed leverage | Exchange order book data |
| Weakness | Assumptions can be wrong | Orders can be pulled or spoofed |
Using it without being fooled
- Treat bright zones as areas of interest, not targets. Price does not have to visit them.
- Confirm with real data: a fall in open interest and a volume spike when price reaches a zone show liquidations actually happened.
- Combine with structure. A sweep of a bright zone followed by a close back inside the range is a stronger signal than the zone alone.
What you can scan with real data
CryptoScanX does not draw heatmaps. It scans the real inputs heatmaps are built from, across 900+ perpetuals:
Leverage stacking up
Positions piling in at similar prices while longs pay up: the conditions that create bright bands below price.
Zone swept and reclaimed
Stops taken below a swing low, with positions closing on the sweep candle.
Frequently asked questions
What is a liquidation heatmap in crypto?
A chart that estimates where leveraged futures positions would be liquidated, colouring each price level by the size of those estimated liquidations. Brighter means more.
Is a liquidation heatmap accurate?
It is a model, not real data. It estimates liquidation levels from open interest changes and assumed leverage, so it is useful for spotting likely clusters but not for exact levels.
What is the difference between a liquidation heatmap and a liquidity heatmap?
A liquidation heatmap estimates forced closes of leveraged positions. A liquidity heatmap shows real limit orders resting in the order book.
Crypto futures are leveraged and carry a high risk of loss. This guide is educational and is not investment advice.