Traders with leveraged positions in the Bitcoin market are often very conscious of two factors. For one, they anticipate significant returns on investment due to their ability to assume larger positions. Secondly, they’re also exposed to the risk of substantial loss from liquidation. Worst still, the extreme volatility of the Bitcoin market increases the likelihood of liquidation.
And recently, Bitcoin liquidation has become a hot topic in the crypto community, with many crypto traders closely following this data. If you’re reading this post, chances are that you’re looking for information on where to find Bitcoin liquidation data. Maybe even before that, you might want to understand what Bitcoin liquidation is.
Thankfully, you’ve found the right article. Here, we’ll discuss all there is to know about Bitcoin liquidation data and BTC liquidation heatmaps. But before moving forward, let’s consider an overview of what Bitcoin liquidation is all about.
What is Bitcoin Liquidation?
Bitcoin liquidation generally refers to a process where leveraged Bitcoin trading positions are either forcibly or voluntarily closed. For starters, margin trading or leveraged Bitcoin trading, as they’re fondly called, comes with defined obligations. One of them is to meet margin calls.
Margin traders can take on large positions because they borrow funds from brokers or trading platforms. In some cases, traders open positions that are over a hundred times larger than their available capital can afford. Thus, brokers set measures to ensure that borrowed funds are protected, and margin is a crucial part of these measures.
Once Bitcoin trading platforms issue a margin call, traders with open leveraged positions must meet the minimum maintenance requirement. Failure to measure up to the margin call results in brokers or Bitcoin trading platforms forcibly closing traders’ accounts or their positions. This, in summary, is what Bitcoin Liquidation is all about. Note that there are situations where traders can personally liquidate their positions. This gives traders more control, particularly in risk management.
In short, a Bitcoin liquidation scenario can have a huge impact on BTC prices, which often can be seen in unexpected price movements in BTC markets. This particularly has been the case since large financial institutions entered the crypto market. Consequently, BTC institutional liquidation can be a major catalyst for BTC price movements.
What is BTC Liquidity Heatmap?
Now that we have defined Bitcoin liquidation let’s go over to what the Bitcoin liquidation heatmap is all about. Simply put, the BTC liquidation heatmap is a visual representation of key price levels where large margin orders reside. It helps traders anticipate areas of the chart where significant squeezes or liquidation may occur in the future.
Most platforms apply simple color schemes to BTC price charts to depict the key liquidation levels. Generally, the colors are calibrated according to the liquidation density. Areas with lighter liquidation clusters have shades ranging from blue to dark green. Meanwhile, levels with higher liquidation density have bright yellow shades in most cases.
Conversely, some platforms select slight variations of these colors. Regardless of the color scheme, all analytics platforms aim to help traders and investors see price levels where major movements will likely occur in the Bitcoin market.
Moreover, technical analysts look at the Bitcoin liquidation heatmap visually and anticipate areas of the chart where large order blocks may be found. Generally, order blocks are fundamental to technical analysis. Later in the article, we’ll cover more details on how different traders use Bitcoin liquidation heatmaps.
A Bitcoin liquidation scenario can have a huge impact on BTC prices, which often can be seen in unexpected price movements in BTC markets.
Where to Find Bitcoin Liquidation Data – Platforms and Sources
There are several methods and resources for finding Bitcoin liquidation data. The list below provides a handful of platforms and applications where traders and investors can secure accurate liquidation data.
Crypto Exchanges
Crypto exchanges often provide real-time information about the liquidation of Bitcoin. Traders can check the data page of their preferred trading platform for details on recent liquidations. Some platforms, such as Binance, provide API for experienced tech experts to extract liquidation data for personal use.
Third-Party Websites
Websites with access to liquidation data API offer real-time liquidation information to traders and investors. Later in the article, you will find information about some of the top Bitcoin liquidation heatmaps available in the market.
Telegram Bots
Several telegram bots are exclusively designed to track real-time Bitcoin liquidation data across trading platforms. Some of these bots are free, while there are a handful of paid bots on the platform.
News and Analysis Websites
Traders can also find data about Bitcoin liquidation via news and analysis websites. These platforms are also helpful as they provide periodic information about the magnitude of liquidation happening in the crypto market. However, traders hardly find real-time information from these outlets, which makes it inefficient when making trading decisions.
Third-party Trading Platforms
Finally, paid Scripts on sophisticated crypto trading platforms like TradingView may provide access to liquidation data, although this data typically requires a premium account. Traders using the platforms’ premium services and paid tools may be able to access real-time information.
Top Bitcoin Liquidation Heatmaps
Below is a list of a few top platforms that offer some of the best Bitcoin liquidation heatmaps, with each platform offering unique features that traders leverage for their analysis.
CME Group
The CME is renowned as the leading derivatives marketplace for futures contracts, including Bitcoin and Ethereum. One of its core strengths, which sets it apart from alternatives, is its plethora of analytics tool kits and the accurate data it provides.
When it comes TO Bitcoin analysis, the CME Open Interest Heatmap report is among the popular tools traders rely on for risk management. It offers easy access to volume and liquidity trend data for Bitcoin futures.
The CME Bitcoin liquidity report is published weekly, providing the open interest positions for BTC traded on the exchange. However, note that this report might provide less information when compared to other liquidity heatmaps. This is because it simply gives users data regarding the open position traded on the CME exchange.
Pros
- Offers valuable information on open interest positions
- Easy-to-use data of BTC futures liquidation levels
- Tracks BTC trading volume
- Traders have access to additional analysis data
- Provide free access to periodic liquidation and open interest reports
Cons
- Provides less information regarding key levels where BTC liquidation might occur
Coinglass
Coinglass is perhaps the most popular BTC heatmap liquidation platform among crypto traders, largely because it takes data from the largest cryptocurrency exchanges worldwide. This includes top-tier crypto exchanges such as Binance, ByBix, OKX, Bitfinex, and many more.
Primarily, Coinglass is a futures trading platform for cryptocurrencies that offers market data and analytics services. One of the tools it provides is the Bitcoin liquidation heatmap, which features two variations.
The first version presents the liquidation zones on the chart, where traders can view the levels against price action data directly on the chart. This works best for traders who specialize in technical analysis.
The second version of the Coinglass heatmap is a more structured visual presentation and is often used in the crypto online community as the benchmark for BTC liquidation data. It categorizes data according to exchanges and cryptocurrencies or exchanges. The advantage of this over the former is that it equally prevents the liquidation of information in a bar chart on the same page. Additionally, it breaks down the liquidation data into long and short aggregates, showcasing which is predominant at any point in time.
Pros
- Offers extensive free services
- The free Bitcoin Heatmap covers up to 3 months of data
- Provides different variations of heat maps, candle charts, and tabulated
- The heatmap page grants access to several other critical market data
Cons
- Includes some distracting data and visual features
Hyblock Capital
Hyblock Cpital is similar to Coinglass in many ways, with one key difference – Hyblock offers paid services, while Coinglass provides several of its Bitcoin and crypto heatmaps for free. Hyblock is described as the platform that empowers traders and investors to make investment decisions.
According to its website, users have unrestricted access to real-time market data, including BTC heatmap. Hyblock heatmaps are popular among traders and widely circulated across social media and trading forums.
Intending users can sign up for an account and pay a fee between $69 and $399 monthly, which is certainly pricey and is more suited for professional traders or small and medium trading organizations.
The pricing details and other essential information are available on the project’s website.
Pros
- Offers instant access to over 100 indicators
- Widely used by traders and investors
- Has over 100K users worldwide
- The heatmap page grants access to several other critical market data
Cons
- Users have to subscribe to a paid plan to use the service
- Detailed information on heatmap look back duration not provided
- Requires users to create mandatory accounts
Coinank
Coinank is another quite popular heatmap platform for crypto investors and traders. This platform, which is essentially a professional cryptocurrency order flow data and derivatives data analysis platform, computes liquidation levels using market data and leveraged amounts, and, much like every other heat map, the liquidation levels’ color code changes from blue to bright yellow to depict liquidation density levels.
The good thing about Coinank is the variety of liquidation data tools it provides. This includes a funding rate heatmap, liquidation, liquidation heatmap, liquidation map, liquidation map, liquidation map, RSI heatmap, and visual screener.
Not surprisingly, it is widely considered the ultimate market data platform for crypto traders.
Pros
- Offers free Bitcoin heatmap and other tools
- Users can access several other free market data on the project’s homepage
- Specialises in BTC market data
Cons
- Can be a bit confusing for beginner traders
Summary – Why is Bitcoin Liquidation So Important?
So, why is Bitcoin liquidation data so important? Well, as a crypto trader, following BTC liquidation can give you a strong indication of when Bitcoin prices might rise or fall. In other words, it is a great tool to help traders predict Bitcoin prices.
Evidently, a massive BTC futures liquidation occurred following the Bitcoin Halving 2024 event, triggering a huge drop in BTC prices.
So, all things considered, understanding how liquidation levels are distributed across the Bitcoin market is a critical part of trading the BTC markets. This is the reason why liquidation heatmaps are gaining popularity among Bitcoin traders and investors. It is also one of the reasons why many crypto sites are mentioning BTC liquidation as a key factor for Bitcoin’s price movements. Knowledge of key liquidation levels is deployed to develop effective trade entry and exit strategies.
