What is the use of long and short positions (why are long and short positions unequal)?

08/15/2023 22:55 • NFT Newsflash • 104 views

What is the use of comparing long and short positions? What is the use of comparing long and short positions in Bitcoin? It allows for a comparison of the quantity of long positions, short positions, and spot positions. If you want to know more, you can analyze the capital flow through the following ways:

1. Display the total quantity of long and short positions by checking the account balances of various trading platforms.

2. The quantity of coins held by three exchanges.

3. The comparison chart of the ratio of buying volume to selling volume of one currency on multiple platforms (or the cold and hot wallet addresses of various exchanges).

4. Determine the transaction price based on the observed market changes, and then judge whether the price deviates from the direction based on the trend line. 2. Compare long and short leverages using BTC/USDT.

For any type of investment, having a long and short leverage should not be less than one investment product, and you should choose a good variety, such as Bitcoin, Ethereum, and Litecoin.

Why are long and short positions unequal?

When the market opened this morning, BTC consolidated sideways between 9400-9600. However, due to the volatile market sentiment and the difficulty of operation, the proportion of short positions decreased significantly (long positions halved). Therefore, the price did not change significantly. As time went on, the market continued to rise, from 9500 to 9700. This rally is also considered to be the result of continuous upward manipulation by major funds. However, this kind of trend has always been one of the topics that everyone pays attention to-why are long and short positions unequal, and why has it been like this for such a long time?

I have analyzed this question many times before because many times what we see is the strong trend of the large-scale market and the changes in the fundamentals, but these data are often not as true and effective as we expected.

First of all, it should be pointed out that currently the market is in an upward phase and there are not many positive news, so the market will gradually adjust downwards or experience a pullback. On the other hand, a similar phenomenon will occur when the BTC/USDT exchange rate falls below 1 US dollar.

If we judge according to this rule: the price of Bitcoin will oscillate around 9300 for a period of time before breaking through the resistance of 9200 again. If the price does not continue to fall or rebound above 9000 without making a new low at this position, investors will re-enter this range to find support and enter the market. In other words, as long as there is any slight movement in the cryptocurrency market, signs of institutions selling off, or abnormal conditions in other indicators, it is a signal to consider entering the market. Therefore, there is still a belief in the current market that the short-term risk of a market pullback is not small, and each time it touches the area above 9100, there will be a certain amount of selling pressure. If buyers want to profit at this time, they must sell their chips first. On the contrary, if they want to close their positions, they must wait for the price to fall below the position of 9300 before they can choose to enter the market. Of course, this is a good idea.

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