中文版本：
<aside> 🏄 Liquidation Map can be used to observe the potential liquidation prices and volumes. ‼️ Risk warning: any data/indicator has its advantages, disadvantages, and limitations. Please make sure to understand them carefully, crypto trading contains substantial risk and is not for every investor. DYOR.
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BTC Liquidation Map
Liquidation Map (LM) displays the potential liquidation prices and position distributions of perpetual traders. The Liquidation Map uses the token current price as the midline. On the left side, it shows the potential liquidation volume corresponding to the estimated prices below the current price, indicating how many long positions may be forcibly liquidated if the price drops to the estimated price level. The red area represents the accumulated long liquidation volume. The opposite situation on the right side.
The Liquidation Map estimates the liquidation risk caused by market fluctuations based on past prices, trading volume, and leverage ratio. When market prices rise or fall, it may trigger the liquidation of positions estimated in the Liquidation Map. Long positions are forcibly liquidated at market short orders, while short positions are liquidated by market long orders. The accumulated volumes in the map can provide insight about the overall traders’ market perspectives .
When larger potential liquidation volumes are triggered, it may cause greater market volatility. For example, when a large number of long positions are liquidated, the execution of a large number of market short positions may further exacerbate the market downturn. Liquidation Map is often used to observe the entry window for large positions. When a large volume of liquidations occurs, it can provide a good trading volume matching opportunity, representing a unique timing for big players.
Liquidation Map can be used to observe significant price levels that may trigger huge volatility, and also understand the market sentiment of perps traders.
💡 If a bull market occurs, the larger liquidation prices to the right of the current price could be a target price for long. If the price level is reached, it may accelerate the upward momentum, in addition, such price level can also be regarded as a bullish/bearish threshold.
Blave develops Liquidation Map through our data collecting methods, which may differs from other liquidation maps in the market. The accuracy and effectiveness of the liquidation map may be influenced by the data quantity and quality.
🙋🏻♂️ Here is an example:
ETH Liquidation Map
For example, in the case of ETH, on the left side of the current price, the largest potential long liquidation volume is found around 3,250 (Mark 1), followed by a larger potential liquidation volume in the range of 3,140 to 2,900 (Mark 2). On the opposite, the largest potential short liquidation volume is located around 4,312 (Mark 3), followed by the range of 3,600 to 3,730 (Mark 4).
It can be viewed that most traders are bullish on ETH, as the potential long liquidation volume is greater than the short liquidation volume. This can be inferred from the difference in the accumulated volume areas.
Understanding the significant liquidation prices and ranges on the chart can serve as a reference for traders' target prices. Additionally, this can be used in conjunction with other Blave data to monitor market trader dynamics.
24h Short Liquidation