🤡Long/Short Ratio continuous time series from 18/04 to 18/05/2025 on @binance

The chart shows the ratio between the total open long and short positions (open interest) of $BTC on #Binance. I will explain the parameters below:

- Ratio ~ 1.0 Neutral zone (long ~ short)

- Ratio > 1.2 Easy long squeeze zone (too many people going long)

- Ratio < 0.5 Easy short squeeze zone (too many people going short)

👉GREEN ZONE RATIO #LONG

Appeared: 18-21/4, 3-7/5, 9-18/5

The ratio fluctuates around 0.5-1.2

- I see this period as a fairly neutral market, not leaning towards long or short. Those with money split into two sides to place orders, each side trying to catch the trend. That’s why if the exchange pushes the price slightly, it can wipe out both sides, especially for those using slightly high leverage.

👉RED ZONE RATIO #short

Appeared: 21/4-2/5 and 7-9/5

The ratio is in the range of 1.2 - 0.5

- This is when I see most people switching to short, thinking that #BTC will continue to decline. But in reality, the price did not drop sharply, even rebounded slightly and steadily each day, causing those shorting to hold positions to the point of breaking their hands. This period is prone to short squeeze, as everyone is shorting while #BTCUSDT refuses to drop.

👉I see the green zone as a time when the long-short sides are in a tug of war, the market is unclear, so it is easy for the exchange to sweep across. The red zone is when many people bet too much on the decline, and the result is being forced to buy back when #btc only needs to rebound slightly and those #shortcoin holders are wiped out.

I wonder how much you all have lost during this period

#Cryptocurrency #Futures