This heatmap reveals the key price zones where leveraged traders are likely to be liquidated—areas where long or short positions may be wiped out if the price moves sharply.

This is not necessarily a case of price action hunting stops, but rather a natural behavior of market dynamics. Still, some clusters may reflect insider trading or collective positioning, especially in previous market cycles.

   – Main idea:
Leverage doesn’t always push the price up or down, but it does create pressure. When too many traders are overleveraged in one direction, the price often loses momentum to continue the trend and instead gains strength to move against them.

It’s important to note that trend reversals can occur abruptly, leaving strong liquidation zones behind untouched.
Indicators such as Volatility, Funding Rate, Open Interest, Google Trends among others, help identify these turning points, distinguishing a mere pullback from a potential structural reversal.