Data from Binance

The Liquidations chart displays two key metrics for Bitcoin over time: Price (USD) and Liquidations, offering insights into market stress and trader behavior.

• Price (USD) (top section, candlesticks): This shows Bitcoin’s market price over time, plotted on the primary y-axis. It helps identify trends, volatility, and key levels of support and resistance in the price action.

• Liquidations (bottom section, line or columns): Sourced from Binance derivatives, this metric shows the total USD value of long and short positions forcibly closed due to insufficient margin. Sudden spikes in liquidations often follow sharp price movements and indicate areas where many traders were caught off-guard, leading to cascade effects.

This data is crucial for understanding moments of high leverage unwind. For example:

• A surge in long liquidations often occurs during sharp price drops, signaling overconfidence in bullish positions.

• Conversely, short liquidations spike during rapid price rallies, revealing trapped bearish traders.

By analyzing both metrics together, traders can spot potential reversal zones (where mass liquidations mark local bottoms or tops), assess leverage buildup and release, and better time entries and exits.

The chart’s dark theme enhances visual clarity, and separate y-axes ensure that liquidation activity is analyzed in context without distorting price trends. The zoomable x-axis and clean layout support precise, focused analysis.

This chart is a powerful tool for understanding market sentiment, trader positioning, and the consequences of high leverage in real time.