3. Conclusion

The long short ratio, as a non core indicator, indicates that the current market is extremely divergent ① Many users are trying to short, and retail investors are more inclined to short than large investors; ② In the past 30 days, there has been no significant net inflow of spot goods overall, but there has been a noticeable net inflow in the contract market; ③ In the process of price increase, it is a bullish opening market, where bullish opening dominates rather than bearish closing, and the price increase is generally more sustained. But with the price breaking through 110000, the net long position has reached its peak at last year's Q4 level, and the net short position has reached its previous bottom position. If there is no sustained inflow of funds from the long position, it is highly likely to enter a trend reversal according to historical rules. In a market with an abnormal long short ratio and significantly high contract trading volume, the growth rate of net long positions has slowed down, and net short positions have also reached support levels. In the future, we can focus on observing whether net short positions have bottomed out and rebounded after reaching a new high, and users who are long or short will start to actively open short positions.