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MAP READING

Bitcoin liquidation map: how to interpret it

A liquidation map combines the actual price path with areas of potential leveraged pressure. Learn what each axis, color, event and filter means before using the visualization as market context.

Updated July 14, 2026About 7 minutes

Core components of the map

The vertical axis represents price and the horizontal axis represents time. Candles show open, high, low and close for the selected interval. Horizontal heatmap bands add a separate layer that describes estimated concentration at different price levels.

CANDLES

Observed price

The market path is built from public exchange OHLC data.

BANDS

Estimated pools

Horizontal zones approximate possible leveraged concentration around a price.

MARKERS

Real events

Points represent liquidations already reported as executed by an exchange.

FILTERS

Active context

Market, timeframe, history, source and intensity all shape what is visible.

Keeping these layers separate prevents a common mistake: treating a future estimated band as if it were a known order or a confirmed position.

What the heatmap colors mean

Poolcod uses a relative color scale. Dark blue indicates lower visible concentration, teal and green indicate intermediate intensity, and yellow or orange highlight the strongest areas within the current view.

The scale is recalculated when the market, timeframe, history or minimum-intensity filter changes. An orange band on one screen is therefore not automatically equal to an orange band on another market. Color ranks the visible zones; it does not promise that the price will visit them.

Intensity is not probability

A brighter zone has more modeled weight relative to the active dataset. It is not an 80% or 100% chance of being reached.

How timeframes change the reading

Each timeframe aggregates candles, volume, taker flow and changes in open interest differently. A five-minute view preserves short-term detail but can react quickly to noise. A fifteen-minute or one-hour view smooths part of that variation and reveals broader structure.

The useful approach is comparative. Start with the interval that matches your horizon, then inspect one higher timeframe to see whether the visible concentration is local or part of a larger structure. Changing timeframe is expected to alter the pools because the underlying aggregation changes.

  • 1m and 5m: high detail, rapid changes and more noise.
  • 15m: a practical balance for intraday context.
  • 1h and 4h: broader market structure and more aggregated zones.
  • 1d: long-horizon context rather than precise intraday timing.

A repeatable reading process

STEP 01

Set the market

Confirm the contract, active exchanges and timeframe before comparing levels.

STEP 02

Find nearby zones

Identify concentrations above and below price and note the structure between them.

STEP 03

Separate layers

Distinguish estimated bands from confirmed real liquidation markers.

STEP 04

Seek confirmation

Compare price reaction, volume, volatility and open interest before acting.

History explains how a band formed and whether the price has already crossed it. The most distant history can be useful for context, but it should not outweigh current positioning and current market structure.

Common map-reading mistakes

  1. Assuming price seeks every zone: many concentrations weaken or disappear without being touched.
  2. Ignoring liquidation side: a drop generally pressures long positions, while a rise can force short positions to close.
  3. Comparing colors as absolute values: the visual scale is relative to the active market and range.
  4. Using only one layer: liquidity context does not replace price structure, volume or risk controls.
  5. Forgetting the filters: two screenshots can look different because their history, exchanges or minimum intensity are not the same.

Frequently asked questions

Does the map show exact future liquidations?

No. Real events are known after execution, while future concentration is presented as an estimate.

Why does a band disappear?

Its modeled intensity may fall as positioning, volatility or input data changes. The scale also changes when you move or filter the view.

Can I draw beyond the loaded candles?

Yes. Drawing tools can use the chart’s future whitespace; their role is annotation and scenario planning, not altering market data.

DATA WITH CONTEXT

Explore the map across multiple timeframes.

Select a market, separate real and estimated data, and adapt the filters to your analysis.

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