Long/Short Ratio cryptocurrency
The ratio of long and short positions of traders in futures markets in real time. This indicator shows the prevailing market sentiment—the percentage of traders holding long and short positions.
Long/Short Ratio by Coin
| Coin | Longhi | Shorts | Ratio | Signal |
|---|---|---|---|---|
| BTC | 58.0% | 42.0% | 1.38 | Нейтрально |
| ETH | 55.3% | 44.7% | 1.24 | Нейтрально |
| SOL | 62.1% | 37.9% | 1.64 | Нейтрально |
| XRP | 51.8% | 48.2% | 1.07 | Нейтрально |
How to use Long/Short Ratio in trading?
Long/Short Ratio Shows the percentage of traders on a specific exchange who hold long positions and short positions in the futures market. This aggregated data is based on the positions of all accounts trading perpetual futures on Binance, OKX, Bybit, and other major derivatives platforms.
The key feature of this indicator is its contrarian nature. In March 2024, when Bitcoin set a new ATH above $73,000, long positions on Binance accounted for over 72% of open positions—an extreme ratio. It's precisely under such conditions that the market is most vulnerable: most positions are already long, buying power is exhausted, and any negative event triggers a cascade of liquidations.
The opposite situation: in November 2022, at the peak of the panic around FTX, the share of shorts jumped to 60–65%. Most were either shorting the market or exiting their positions. This historically coincided with the formation of a bottom: shorts were "too right," and the slightest positive shift could trigger a short squeeze.
Interpretation of extreme values
Extreme long overweight
The market is biased toward buyers. Most are betting on growth. This is interpreted contrarianly: buying power is close to exhaustion, and the risk of long positions being liquidated is increasing. This isn't a sell signal, but a reason to lower leverage.
Extreme shorts overweight
The market is in fear, with most shorts or staying out of the market. Contrarian signal: potential for a short squeeze. If a positive catalyst emerges, the upward movement is reinforced by forced buybacks of shorts.
Neutral zone
The market is in relative equilibrium. Neither longs nor shorts have a significant advantage. Price movement is determined by external factors—news, technical analysis, and on-chain data.
A sharp change in an hour
A rapid shift in the ratio (more than 3-5% over a few hours) is an important signal. Large-scale liquidation of longs or shorts changes the ratio. This confirms the current price movement and its strength.