Decoding Leveraged Crypto Positions: 4 Scenarios to Watch

Leveraged trading strategies are crucial to navigating the volatile world of cryptocurrencies, but understanding how they interact is critical for traders. Two key indicators that shed light on this dynamic – Open Interest (OI) and Long/Short Ratio (LSR) – help analyze market trends. According to Alphractal, these indicators reveal four distinct scenarios when combined. Each scenario offers crucial insights into the market’s direction and potential risks.