A recent Datascope analysis shared via CryptoQuant showed that extreme swings in the ratio of long/short volume to open interest often signal major market reversals.
This is what makes this metric key to monitor in investor behavior.
A higher ratio suggests bullish sentiment, while a lower one indicates bearish expectations.
Datascope’s historical data shows an inverse relationship between this ratio and the price of Bitcoin. Spikes in long positions usually precede price corrections, while most short positions often mark the bottom of the market, indicating potential recoveries.
Datascope currently maintains a short-term bearish view on BTC due to the recent spike in the long/short ratio, signaling excessive optimism. This pattern has historically led to market corrections, reinforcing the need for caution.
JPMorgan analysts are raising doubts about Bitcoin’s role as “digital gold” as demand for traditional gold continues to strengthen.
Cryptocurrency analyst Ali Martinez has raised concerns about Ethereum’s future performance against Bitcoin, suggesting a significant decline could be on the horizon.
The U.S. Bitcoin mining sector is gearing up for potential challenges after President Donald Trump announced new tariffs, set to take effect on April 5.
The cryptocurrency market faced a sharp decline after President Donald Trump announced new tariffs, triggering a sell-off that wiped out around $509 million in value.