Technical Note | $BTC | Network-wide account long/short ratio: 1.86 | Long 65% / Short 35%
Definition: It’s not uncommon for the network-wide account long/short ratio to rise even as prices fall. One explanation is that many small accounts tend to go long as prices drop.
How to read it: When the long/short ratio and funding rate both lean in the same direction, it can be a clearer sign that positions are concentrated. When they point in different directions, don’t rush to draw conclusions.
Understanding an indicator is about being less spooked by the numbers, not using it to predict whether prices will rise or fall.
Definition: It’s not uncommon for the network-wide account long/short ratio to rise even as prices fall. One explanation is that many small accounts tend to go long as prices drop.
How to read it: When the long/short ratio and funding rate both lean in the same direction, it can be a clearer sign that positions are concentrated. When they point in different directions, don’t rush to draw conclusions.
Understanding an indicator is about being less spooked by the numbers, not using it to predict whether prices will rise or fall.