đ„Leverage Positions on Binance Reveal True Trader Sentiment!
Our Long vs Short Open Interest metric clearly shows that, over time, the dominant positions have been longs. The last time shorts outnumbered longs in the total open interest was in 2022.
The Long vs Short Open Interest Ratio measures the proportion of longs to shorts in the open interest. Currently, the ratio is at 51.8% for longs. In 2024, new long positions surged to peaks of 66%, leading to a BTC price dump. A recent value close to 50% suggests a rising interest in shorts, potentially indicating local bottoms if it falls below 50%.
The Long/Short Ratio (Accounts) is a well-known metric in the market, demonstrating that when accounts favor shorts, BTC prices often move against this sentiment, leading to liquidations. Currently, 62% of trades on Binance are long positions, while 38% are short.
The Long/Short Ratio Dominance metric helps pinpoint precisely when the number of trades is skewed towards longs or shorts. Historically, when traders favor shorts, prices often rise or form local highs, as seen with local tops in 2024. Conversely, excessive long positions tend to lead to price declines or consolidation.
These metrics confirm the significant impact of leveraged positions on Binance, offering valuable sentiment insights. Understanding these dynamics can give you an alpha edge in your trading strategies!
