DERIV Derivatives · Updated April 2026 · ~4 min · For TradingView desktop 3.2.1
Using the Crypto Liquidation Map & Levels
Every leveraged position has a liquidation price. When many positions' liquidation prices cluster at a price band, it becomes a liquidity magnet — price often moves toward dense liquidation zones, because forced liquidations create fills that draw price to "hunt" those stops.
Why price heads to liquidation zones
- Dense long liquidations below: once touched, cascading liquidations dump price = a downward cascade (long squeeze);
- Dense short liquidations above: touching them squeezes shorts higher;
- Price often oscillates between the two zones, "sweeping stops."
How to use it
- Treat large liquidation clusters as short-term targets (price tends to test them);
- When you take a leveraged position, don't put your liquidation price in the same dense band everyone uses — that's where the hunting happens;
- Extreme wicks after a cascade are often short-term bounce points.
Tip: the liquidation map is a probability/liquidity lens, not a precise forecast. With open interest and funding, you can see if the leverage structure is fragile. Always use leverage you can survive — see position sizing.