Liquidation Map

Based on the orange dotted line indicating the current price, the left side represents the long leverage positions placed at that price, while the right side represents the short leverage positions placed at that price

If the price falls and the current price line moves to the left, the long positions at that price are liquidated

Conversely, if the price rises and the current price line moves to the right, the short positions are liquidated

Trading tends to be active in areas with a high accumulation of leverage, and there is a high probability that price movements will reach these levels due to liquidations

Often, the price will move through a heavily leveraged zone due to liquidation activity and then reverse direction, which allows these zones to be identified as potential support or resistance levels