The BTC long-short ratio is currently low, the asset is prone to price recovery. This is indicated by the analysis from #DecenTrader.
Their chart shows the BTC Long/Short Ratio (purple line) and the BTC price (white line). The yellow lines on the chart mark key moments when the Long/Short Ratio approached critical levels, which preceded significant moves in the#BTCprice.
Here are some key points from the schedule:
1. Low Long/Short Ratio: The current low ratio may indicate that most traders are pessimistic and betting on a further price decline. Usually, in such situations, a short squeeze may occur, when an unexpected upward price movement forces traders to close their short positions, and this is buying at the market and this leads to an even greater price increase. Including cascading liquidations. If you look at#Coinglassdata on liquidations, a quarter (!) of all bear liquidations per day were in just one last hour.
The momentum that is happening now is liquidations and bear stops.
2. Previous chart history reversals show that such low Long/Short Ratio levels often precede not just short squeezes, but price reversals to the upside.#BTCprice may now be on the verge of continuing to rally, rather than a simple short squeeze. If the current Long/Short Ratio level starts to rise with a steadily rising price, this could confirm a new uptrend.
BUT in general, given the nature of the growth and reversal candles on the four-hour TF, by the close of the current candle in an hour we expect at least a move into consolidation. If, for example, Zhao's release is confirmed, this could put a peak in growth and launch "sell on the news".
