Over 70% of Altcoins Show Long Bias—Could a Short Squeeze Be Next?
According to Joao Wedson, Founder of Alphractal and verified author at CryptoQuant and CoinMarketCap, more than 70% of altcoins currently have a Long/Short Ratio above 1, indicating a clear dominance of long positions over shorts across the crypto market.
According to him this trend reflects a heavy concentration of bullish bets—one that may be contributing to the market’s recent choppy, low-momentum behavior.
Wedson notes that when the long/short ratio is elevated, markets often seek balance, typically by flushing out overextended positions.
This correction can result in a sentiment flip—where longs get liquidated, sparking renewed short interest, and eventually setting the stage for short squeezes that drive prices sharply higher.
How to Interpret the Data
- Long/Short Ratio > 1: More traders are betting on price increases.
- Market Cap Rank (X-axis): Positions are spread across large to small-cap altcoins.
- Color Coding (RSI): Indicates whether an altcoin is currently overbought or oversold on a 24-hour basis.
Key Takeaway
While the high percentage of long-biased traders may suggest near-term crowding and risk of liquidations, Wedson sees this setup as constructive. Historically, such environments have preceded rapid market rebalancing and upside volatility as shorts rush to cover—especially after an initial wave of long liquidations.
Tip from Wedson: “Watch closely if there have been many long liquidations in a particular crypto — this is often the trigger for a squeeze.”
Traders eyeing altcoins should stay alert to shifting positioning metrics, as the current imbalance could quickly convert into breakout opportunities across the market.
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