Technical Note | $JCT | Marketwide account long/short ratio: 0.6 | Long 37.4% / Short 62.6%
First, the definition: It is common for the account long/short ratio to rise during a decline. A common explanation is that many small accounts like to buy the dip as prices fall.
Next, how to read it: A long/short ratio above 1 does not mean prices will rise immediately, and one below 1 does not mean they will fall immediately. It reflects position bias, not market direction.
Don't change your original plan just because of a particular number, and never gamble on a prediction using borrowed funds.
Crypto trading involves risks. Trade with caution.
First, the definition: It is common for the account long/short ratio to rise during a decline. A common explanation is that many small accounts like to buy the dip as prices fall.
Next, how to read it: A long/short ratio above 1 does not mean prices will rise immediately, and one below 1 does not mean they will fall immediately. It reflects position bias, not market direction.
Don't change your original plan just because of a particular number, and never gamble on a prediction using borrowed funds.
Crypto trading involves risks. Trade with caution.