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Bitcoin liquidation heatmap: Reading crowded price zones before sharp drops

A bitcoin liquidation heatmap can help gauge where price volatility may increase by showing where leveraged positions are concentrated, the Crypto Basic said on June 5. The tool overlays exchange data such as open interest, leverage and margin levels on a price chart. When liquidation orders cluster at certain levels, price moves into those zones can trigger cascading liquidations. Examples cited include a February drop and large liquidations on HTX.