Long-short ratio of BTC perpetual futures indicates bearish sentiment
CryptoNewsTerminal Staff22 May, 2024
Long-short ratio of BTC perpetual futures indicates bearish sentiment
Long-short ratio is an important indicator of market sentiment. It measures the relative strength of long and short positions in a futures market. A high long-short ratio indicates that there are more long positions than short positions, which suggests that the market is bullish. Conversely, a low long-short ratio indicates that there are more short positions than long positions, which suggests that the market is bearish. The current 24-hour long-short ratio of BTC perpetual futures on the world's three major cryptocurrency futures exchanges is as follows: All exchanges: Long 49.03% / Short 50.97% Binance: Long 48.74% / Short 51.26% OKX: Long 49.34% / Short 50.66% dYdX: Long 51.76% / Short 48.24% As you can see, the long-short ratio on all three exchanges is below 50%, which suggests that the market is bearish. This is in line with the current price action of BTC, which has been trending down in recent weeks. It is important to note that the long-short ratio is just one indicator of market sentiment. It should not be used in isolation to make trading decisions. However, it can be a useful tool for identifying potential trading opportunities. ```
