2x longs than shorts — good or bad?

[sleepfirefly]

https://x.com/cointelegraph/status/2010026368210264286?s=61

this post on x by cointelegraph says that there’s more longs than shorts. by definition, longs should mean that there are people expecting bitcoin to go to a higher price but too much of it would mean that the market will be more vulnerable to fluctuations or might even go down

some whales might even purposely dump so they can buy again at a lower price. what to do when this happens? do we look for exits? liquidation for these longs might happen, what do you think?

[bettercrypto]

If you are confident in the analysis you’ve done, you won't hesitate on whether you should sell or not. That is why technical or fundamental analysis becomes the main reason for achieving decent profits in crypto trading.

Additionally, with long-term holdings, investors usually expect and truly desire a high return on the capital they’ve deployed, whether it’s in Bitcoin
or other top altcoins in this industry.

[Bobrox]

You can use the indicator of cointelegraph information about have 2x long position than short position all depend your research and analyzing about its possibility coming true for few days later the bullish moment. If your confidence with that predicting you can open long position regarding bitcoin price seems table around $90k to $91k and still not huge significant decreasing. Overall I don't accept more with cointelegraph information ever has bad experienced when sharing fake information make many people panic to sell their bitcoin assets.
You need make research and looking forward about possibility bad or good news how current global situation not really good and has possibility the market get correction moment. If you confidence for long position opening don't forget keep using stop loss feature to prepare if price suddenly dump.

[Oshosondy]

some whales might even purposely dump so they can buy again at a lower price. what to do when this happens? do we look for exits? liquidation for these longs might happen, what do you think?

It depend on what trader are you. Some traders like to use high leverage, a small dump can lead to their trading fund liquidation, but instead, they make use of stop lose to reduce the losses. This is different from someone that make use of small amount of money, where the price of bitcoin dump but they buy more bitcoin instead.

2x long position liquidation is not what that is easy to occur, but it is possible. Assuming a bitcoin trader open a position at $100000 bitcoin price, the liquidation will be close to $50000 bitcoin price, like the price divided by 2.

[JeffBrad12]

https://x.com/cointelegraph/status/2010026368210264286?s=61

this post on x by cointelegraph says that there’s more longs than shorts. by definition, longs should mean that there are people expecting bitcoin to go to a higher price but too much of it would mean that the market will be more vulnerable to fluctuations or might even go down

some whales might even purposely dump so they can buy again at a lower price. what to do when this happens? do we look for exits? liquidation for these longs might happen, what do you think?

It opens up the possibility of long squeeze when it happens, market will try to go down liquidating all those long position to fuel for the next leg up.
I usually avoid opening long and if any I'd open short position on the nearest resistance just in case. however, there is no guarantee the market will squeeze those positions so always be careful.
See the liquidation heatmap, it helps at time like this.

[Wiwo]

https://x.com/cointelegraph/status/2010026368210264286?s=61

this post on x by cointelegraph says that there’s more longs than shorts. by definition, longs should mean that there are people expecting bitcoin to go to a higher price but too much of it would mean that the market will be more vulnerable to fluctuations or might even go down

some whales might even purposely dump so they can buy again at a lower price. what to do when this happens? do we look for exits? liquidation for these longs might happen, what do you think?

Long means expecting the price increase in an unspecified time frame,  what become the risks for those traders who are gambling on the price of Bitcoin leverage market Long positions, when you want to go Long, there are few things to consider,  one is the liquidity price means your liquidation price, having a very low liquidation price and Long time waiting portfolio,  going Long is most profitable.

Think this statement is more of trader's than Long term bitcoin investors, between that we expect anything since the level of influence from whales and rest is higher when the percentage of leverage Long position is high such as this.

[EarnOnVictor]

some whales might even purposely dump so they can buy again at a lower price. what to do when this happens? do we look for exits? liquidation for these longs might happen, what do you think?

Don't get this twisted, if you see buyers building up and the market is bullish or becomes extremely bullish, that doesn't call for a panic, as it only shows the true trend of the market with a stronger tone of it. The only danger here is when the traders/investors are just buying the market at that time, as it could amount to buying it at the peak due to FOMO, which is bad.

Also, in this situation, there are possibilities. 1. The market might continue to buy in that fashion for months without any meaningful pullback. 2. The market could reach a point and either have a significant correction or reversal. Either way, no one can know it beforehand, nothing is certain in trading and investing. The best we could do here is to allow the chart to guide us and also manage our portfolios properly.

[logfiles]

The market always keeps us guessing. Imagine, 2 months ago, I thought that by this time the Bitcoin price would already be at around $70K and going downwards marking a beginning to the bear market but today, here we are.

I believe the longs are pretty confident that there might be another new all-time high in the near future, but either way, Liquidation will happen once there is some slight volatility.

[Mrbluntzy]

2x long position liquidation is not what that is easy to occur, but it is possible. Assuming a bitcoin trader open a position at $100000 bitcoin price, the liquidation will be close to $50000 bitcoin price, like the price divided by 2.

Your explanation is correct but in this case, I don't think the OP is referring to a 2x leverage for long position trade, at first I thought that that was what he was talking about but after visiting the x link he provided on this thread, I then understood that what he meant and what they meant on that tweet is that the total number of long (Buy) position/orders by different traders is 2X higher than the number of short (sell) positions/orders by all traders.

[BitMaxz]

For long-term perspective, a long position is a must why? Because in Bitcoin, if you have historical data, you should be able to notice that the price keeps increasing, not staying on the bearish side; it is always on the uptrend.
So if you are trading with futures, you have a higher chance to make profit if you go long, but still it depends on the market condition. Like, for example, if the current trend is bearish, why would you go long with 1:2RR? That's pretty risky; you shouldn't be against the trend. The 1:2 risk-reward ratio would not work here because the market has a strong bearish momentum, meaning there are more declines coming, and it has a high chance to break the lower low. If the trend is in an uptrend and you go long, then 1:2RR should work, and honestly, if you have a fixed 1:2 RR, you are going to miss those huge spikes. To me, I have a plan on this; I added a trail stop once the first target hit from 1:1 and put my SL to break even. If the 1:2 target hits, I am going to enable the trail stop and let it hit my trail stop from the top.

[LastKiss]

~snip~ vulnerable to fluctuations or might even go down

some whales might even purposely dump so they can buy again at a lower price. what to do when this happens? do we look for exits? liquidation for these longs might happen, what do you think?

Before we witnessed the market had more shorts than longs and we saw those shorts get hunted. Now the situation has flipped there are more longs than shorts which means the opposite move could potentially play out. If you have your own strategy, the most important thing is to stick to it and apply proper risk management. That way, even if your setup not working, you won’t lose a significant amount of your capital. Right now, traders are confused about where the market is heading, especially since we’ve been ranging for weeks and some economics data this week.

Before More Shorts than longs

Now More longs than shorts

There were more shorts when the price was around $84k, and after we moved up to $94k, more longs started to appear. Situations like this should make us more cautious when open a new position whether it's long or short, because the market can always play tricks on us 

[shinratensei_]

The market always keeps us guessing. Imagine, 2 months ago, I thought that by this time the Bitcoin price would already be at around $70K and going downwards marking a beginning to the bear market but today, here we are.

I believe the longs are pretty confident that there might be another new all-time high in the near future, but either way, Liquidation will happen once there is some slight volatility.

Thats how market works, after dump there will be sideways, after sideways the market will recover for a bit
It will go to the nearest resistance following the supply and demand and then if it failed to break out it will be on its way to $70k or if the breakout succeeded it will go to higher resistance.

[GreatArkansas]

(....)

some whales might even purposely dump so they can buy again at a lower price. what to do when this happens? do we look for exits? liquidation for these longs might happen, what do you think?

Yes, this is possible. Some are also doing "hedging" for example, they are short in the futures market, but they are buying on the spot market. I'm not really familiar with this kind of scenario. But I believe these do exist like being used to manipulate the market for their own advantages.

[Gozie51]

some whales might even purposely dump so they can buy again at a lower price. what to do when this happens? do we look for exits? liquidation for these longs might happen, what do you think?

If I see more speculation on long, I try to look for buy entry and then enter to shift my entry to wait for a break even. If that happens then it will be a long for good profit. I'm also mindful of the dump by whales which will look to others as if the market suddenly starts going against you because you entered the market  . Although, if that is the right direction of the market, it will go back to it. So like I said, to follow general speculation, you also need a stop loss incase whale dump the price.

Therefore, you don't need to quit or exit when the market starts to dump, set your SL and make up your mind to take the loss incase.

[Aanuoluwatofunmi]

2x is not bad, when we are taking future and leverage on 2x then we can't say that it's high risk, even if we move closer to 10x but in such case, we must be fast about the process and stay by the trade to quickly take advantage of selling fast each time we realized something before the market pattern changes and we begin to lose in the opposite, lastly, we should not go for a trade we may not be able to risk taking, because sometimes it comes with higher risk to trade future/perpetual than a normal spot trade.

[Wiwo]

(....)

some whales might even purposely dump so they can buy again at a lower price. what to do when this happens? do we look for exits? liquidation for these longs might happen, what do you think?

Yes, this is possible. Some are also doing "hedging" for example, they are short in the futures market, but they are buying on the spot market. I'm not really familiar with this kind of scenario. But I believe these do exist like being used to manipulate the market for their own advantages.

Possible with the huge amount that goes into liquidation when price dumped significantly forcing leverage long position holders to lose alot, all that money get traded on the spot market for their long term investment, whale's have alot of money to play around with, gambling on the future market is an easy thing for them to do, and the have the liquidity needed to effect and manipulate the market at anytime.

[Alphakilo]

It would be based on perspective I must say, because while some investors are trend followers, others are simply risk managers.
However, a simple rule applies to all and that is to never trade based on only ratio. The open interest is a place to always check because it bears the high risk of a massive liquidation happening, if it actually is the opinion of others and market sentiment at the time.

[programmer3666]

In such situations where there is twice as many long as short! Then it simply signifies that lots have traders have that gut feeling that the price will eventually shoot upward! but it can also be quite risky because the whales might short manipulate the market by dumping on everyone just to force the price of the market to go downward and then they go ahead to buy back cheaper, which is why risk management is very recommended! Always stay extra careful and make sure to use stop-loss and now just blindly follow the norms of the crowd. Having an exit plan before things turn south is a smart thing to do.

[jossiel]

this post on x by cointelegraph says that there’s more longs than shorts. by definition, longs should mean that there are people expecting bitcoin to go to a higher price but too much of it would mean that the market will be more vulnerable to fluctuations or might even go down

I don't think that trades or volumes from the futures market would mean a lot in the actual market of Bitcoin.

This doesn't define where the market will be in if there's more longs or shorts, the market has its own attitude towards several factors and not only based on the volume for both longs and shorts.

We've seen that many have always been liquidated when the market has a sudden pump/dump.