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Glossary · Measured vs modeled

Liquidation heatmap vs liquidity heatmap

A liquidation heatmap estimates where leveraged positions could be closed out, so it is a model, while a liquidity heatmap shows where limit orders are resting now, so it is measured.

See the measured one on the free chart

Side by side.

A liquidation heatmap and a liquidity heatmap compared
AspectLiquidation heatmapLiquidity heatmap
What it showsPrice levels where leveraged positions could be forced to closePrice levels where limit orders are waiting on the order book
Measured or modeledModeled: an estimateMeasured: read from the order book
Built fromOpen interest plus guesses about traders' leverage and entry pricesThe order book itself, sampled over time
Why it can misleadThe bands are assumptions, not positions anyone can seeOrders can be pulled before price arrives
On MarkovNot drawn. Markov shows the liquidations that printed insteadThe heatmap under the candles on the chart

Which one Markov shows

Markov shows the measured one. The chart draws the order book's resting size as a liquidity heatmap under the candles, and the liquidation pages show the liquidations that actually printed, sized by their dollar value. Markov does not draw projected liquidation levels, because they would be an estimate that looks like a measurement.

BTC liquidations, live → BTC order book walls, live → All glossary terms →

The data sources page says how every number is made, with its limits. Markov provides research tools and education, not financial advice.

Questions.

What is the difference between a liquidation heatmap and a liquidity heatmap?

A liquidation heatmap estimates where leveraged positions could be closed out, so it is a model, while a liquidity heatmap shows where limit orders are resting now, so it is measured.

Is a liquidation heatmap real data?

No. It is a model. It estimates where positions would be forced to close from open interest and assumptions about leverage and entry prices, so it shows likely zones, not real positions or orders.

Which one does Markov show?

Markov shows the liquidity heatmap, measured from the order book, and the liquidations that actually printed, each with its source. It does not draw projected liquidation levels.

Can resting liquidity and liquidations be used together?

Yes. Resting orders are context for where price may react, and printed liquidations show where traders were already forced out. Neither is a promise, and Markov gives no buy or sell calls.