Liquidation Depth
The Liquidation Depth chart shows the distribution of leveraged positions that are at risk of liquidation at different price levels. It is only available on Perpetual Markets, not spot.
Purpose
This chart allows traders to visualize where large amounts of forced liquidations may happen, helping them anticipate volatile moves caused by liquidation cascades.
Chart Details
X-Axis: BTC price levels
Left Y-Axis: Cumulative liquidation value in USD
Right Y-Axis: Liquidation size (contracts/tokens)
Layers
Long Liquidation Size / Value (Red) – Positions that will be liquidated if price drops
Short Liquidation Size / Value (Green) – Positions that will be liquidated if price rises
Dashed Line – Indicates the current market price
Why It Matters
Volatility Forecasting – Anticipate sharp moves if price nears a cluster of liquidations
Entry Timing – Identify levels where liquidations may cause short-term wicks or slippage
Risk Awareness – Avoid entering positions near price levels packed with liquidation risk
Market Maker Behavior – Market makers may intentionally move price to trigger liquidations of large nearby positions, as it's an opportunity for them to capture volume and fees
This tool is critical for understanding where the pain points are in the market — and who might be targeting them.
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