What does the currency circle liquidation map mean? How to read the currency circle liquidation map?

The "Cryptocurrency Liquidation Map" is a visual chart that shows the liquidity status of the cryptocurrency market. It assesses market sentiment and potential risks that could trigger a liquidation event by tracking key indicators such as open interest value and funding rates. By analyzing liquidation maps, investors can identify overleveraged and vulnerable positions, helping them make informed trading decisions.

What does the currency circle liquidation map mean?

The Liquidation Map is a tool for real-time monitoring of cryptocurrency liquidation transactions, showing the size of expiring contract positions on each exchange within a specific time frame.

How do you view the currency circle liquidation map?

When using the currency circle liquidation map, you need to pay attention to the following points:

• Time range: Select the time range of the liquidation transactions you want to view , which can be the last few hours or days.
• Exchange: Select the specific exchange you want to see cleared transactions on, such as Binance, Huobi, or OKX.
• Contract Type: Select the contract type for which you want to view liquidated transactions, such as Perpetual Contracts or Quarterly Contracts.
• Price Charts: The map will display the current cryptocurrency price chart for each exchange.
• Liquidation Bar Chart: The Bar chart shows the size of short and long liquidation positions that are about to expire. Green bars represent long liquidations and red bars represent short liquidations.
• Liquidation Price: The upcoming liquidation price is shown above the bar chart, which is the price level at which the contract will be liquidated.
• Position Size: The size of the contract position that is about to expire is shown below the bar chart.

How to interpret the liquidation map?

By viewing the liquidation map, traders can predict upcoming liquidation pressure and take appropriate measures.

• Massive liquidations: If a large number of liquidation bars appear on the map, it indicates that a major liquidation event is about to occur, which may cause large market fluctuations.
• Long/Short Liquidation: Green bars indicate long liquidations, red bars indicate short liquidations. If long liquidations are higher than short liquidations, it indicates that the market may be bullish.
• Liquidation Price: The liquidation price shows the price level at which the contract will be liquidated. If the liquidation price is close to the current market price, it indicates that the upcoming liquidation may be larger.
• Contract Position Size: The number below the liquidation bar represents the size of the contract position that is about to expire. The larger the position size, the greater the potential liquidation pressure.

By following the currency circle liquidation map, traders can learn about upcoming liquidation events in advance and adjust their trading strategies accordingly.

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