Long-Short Ratio

The Long-Short Ratio provides a snapshot of the number of accounts or positions holding long positions versus those holding short positions in a specific asset. This metric is widely used in cryptocurrency exchange data to assess the consensus view of retail or institutional traders.

A ratio skewed heavily toward longs might indicate over-leveraged sentiment that is susceptible to a long squeeze. Conversely, a heavy short bias can signal a potential short squeeze if the price trends upward.

By tracking this, traders can infer the level of market crowdedness and potential for rapid liquidations. It is a vital tool for understanding retail sentiment and positioning.