Traders use long-short ratios to interpret Bitcoin's volatility

Recent analysis of BTC perpetual contract trading highlights the importance of monitoring long-short ratios for smart decision-making. This ratio reflects market sentiment, with extreme long positions usually predicting a price correction, while short tendencies may predict an upward price reversal. Influenced by macroeconomic and regulatory factors, this ratio should be used in combination with trading volume, position volume and price trends to form a comprehensive strategy to assist in risk management in volatile markets.