Bitcoin Liquidation Heatmap: Unveiling Market "Get Liquidated" Points and Trading Timing

“Just last night, Bitcoin once fell below $91,000, with the total liquidation amount exceeding $301 million within 24 hours, and over 100,000 people were liquidated.” These astonishing liquidations did not occur randomly, but clustered around specific price levels - this is exactly the market truth revealed by the Bitcoin liquidation heat map.

01 What is the Liquidation Heatmap?

The liquidation heatmap is a visualization tool that shows the concentration of liquidation orders waiting to be executed at different price levels.

The “hotspots” on these heatmaps indicate areas where leveraged positions have been significantly liquidated, typically represented as red or orange blocks on the chart.

In simple terms, when the price of Bitcoin approaches these areas, the market usually experiences significant volatility, as a large number of stop-loss orders set by traders at this point will be triggered, leading to a chain reaction.

“These levels typically signal where leveraged positions are being liquidated. If you are tracking short-term fluctuations or planning to trade in high liquidity areas, this is worth noting.”

An observer with the username ResearchChadButBroke bluntly pointed out in his sharing at Gate Square: “These heat maps are not just analytical tools—they are essentially predator maps, showing where market sharks can feast on over-leveraged traders.”

02 Current Status of the Bitcoin Market and the Significance of the Close Position Heatmap

As of November 28, 2025, the price of Bitcoin remains above the $91,000 level, reaching a high of $91,836 and a low of $89,602 in the past 24 hours.

This price trend is closely related to the market's optimistic sentiment regarding the Federal Reserve's interest rate cut. Currently, the CME FedWatch tool shows that the likelihood of the Federal Reserve cutting rates by 25 basis points in the December meeting has reached 85.3%.

In this market environment, the liquidation heat map holds more significant meaning:

Understanding heat maps can help traders identify key liquidity areas in market structure, avoid becoming targets of “hunting,” and even utilize this information to formulate more effective trading strategies.

During the market fluctuations from November 27 to 28, over 100,000 people were liquidated in the cryptocurrency market within 24 hours, with a total liquidation amount of 301 million USD, which fully demonstrates the dangers of leveraged trading in volatile markets.

03 How to Interpret the Bitcoin Close Position Heatmap

To read the Close Position heat map, you need to pay attention to three key elements:

Heatmap Color Intensity

The red or orange areas in the heatmap indicate price levels where liquidation orders are highly concentrated, which are the areas most likely to experience significant volatility in the market. The darker the color, the stronger the potential volatility in that area.

Key Price Level

In the heat map during the morning trading session on November 24, key sectors flashed in major trading pairs, indicating the concentrated areas of the most vulnerable leveraged positions in the market at that time.

These levels often become price magnets, attracting the market to move towards these areas, as big players know there is plenty of liquidity to harvest there.

Long and Short Distribution

The heatmap not only shows the liquidation points for long positions but also displays the liquidation clusters for short positions. By identifying the dense areas on both sides, traders can predict potential market reversal points.

“Between $10,280 and $10,400, we see what they call 'institutional support', but to be honest: this is exactly where the big players are positioning themselves to take advantage of retail liquidation.”

04 Close Position Heatmap Practical Application

For cryptocurrency traders, the liquidation heatmap has several important practical applications:

Identify Support and Resistance Levels

The clusters of liquidation shown in the heatmap often coincide with key technical support and resistance levels. Once these levels are broken, it will trigger a chain reaction, accelerating price movements.

Predict market volatility

When the price approaches the red area on the heatmap, market volatility often increases significantly. This is both a risk and an opportunity. Sensitive price areas can help traders set more reasonable stop-loss levels to avoid being washed out by random fluctuations.

Discover market turning point

Large-scale liquidation events often signify the formation of a local top or bottom in the market. After weak holders are cleared out, the market often moves in the opposite direction.

A user commented on Gate Square: “This liquidation heatmap is really amazing, I just happened to see a few key positions indeed flashing red.” This reflects the actual traders' reliance on these tools.

05 Heatmap Strategy in the Current Market

According to the latest analysis released by Gate Research Institute on November 28, BTC and ETH continue to maintain weak fluctuations, with a weak rebound after the price fall.

In this market environment, the signals provided by the liquidation heatmap become even more important:

Contract data shows that after significant deleveraging, leverage funds have not noticeably recovered, and open positions remain at low levels. The concentrated surge in long position liquidations at the beginning of November reflects a lack of market confidence, and caution is needed for subsequent short-term corrections.

From the perspective of heat map analysis, the current market conditions are:

  • Beware of low volatility traps: When the Bitcoin price consolidates around $91,000, it may be accumulating energy for the next significant volatility.
  • Focus on the Intensive Liquidation Area: Currently, the clusters of liquidations above and below the market can provide clues for potential price breakout directions.
  • Combine multiple indicators: Using heatmaps in conjunction with open contracts, funding rates, and other indicators can achieve a higher win rate.

06 Risks and Limitations of Using Heatmaps

Although the liquidation heat map is a powerful tool, traders must understand its limitations:

The heatmap shows the current liquidation orders, but market conditions can change rapidly, rendering these levels ineffective. Big players sometimes deliberately push prices into these areas to trigger stop losses, and then reverse direction; this behavior is known as “stop loss hunting.”

A user named Moon火箭队 commented on the Gate Square: “With such a dense liquidation area, the leveraged traders are probably going to get washed out.” This vividly describes the market dynamics predicted by the heat map.

Most importantly, no single tool should be the sole basis for trading decisions. The liquidation heat map should be used as part of a comprehensive analysis toolbox, in conjunction with fundamental analysis, technical indicators, and market sentiment.

Future Outlook

The red areas on the liquidation heatmap not only mark the place where dreams are shattered but also point out opportunities for savvy traders. While most only see risks, traders who understand the dynamics of market leverage can see the potential within.

At Gate.io, we provide the latest tools and data to help you gain a competitive edge in the cryptocurrency market. Learning to interpret these signals is not to avoid risks, but to understand them and ultimately turn them into your advantage.

The market always rewards those who can see through the surface, and the liquidation heat map is the mirror that grants you this ability.

BTC-3.06%
ETH-3.74%
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