On the Long/Short Ratio chart, it triggered a sell signal right at yesterday’s top candle.
Combined with other metrics, this area looks like a potential short opportunity.
Short liquidations, elevated Funding Rates, and rising Net Longs suggest that the path is currently more open to the downside than to a continuation of the rally, setting up a classic bear trap.
Similar behavior was seen during the previous cycle’s bear market. (Image below)
That said, these are probabilities, not certainties.
Don’t overreact, Bitcoin loves to surprise.