Binance, Bybit, and other exchanges' perpetual contract long-short trading volume deviation is still below the 90-day median (red line), but during the recent pullback, you can clearly see the weakening tendency of short positions. In the chart, while the price is dropping, the yellow, blue, and gray curves are moving closer to the red line. This indicates that the current futures market is transitioning from 'extremely bearish' to 'cautiously bullish.' If you're wondering, is this a good thing? I'd say: 'Of course it is!' Look at the two curve movements circled by the red dashed lines in the chart—don’t they look similar? For example, in my December 15 article, 'Why is ETF losing purchasing power?', I mentioned a negative feedback loop we are currently facing (see citation). Only when bullish sentiment starts to recover gradually can we hope to break the loop. This is also part of the process where traders are repricing the market. ---------------------------------------------- This post is sponsored by @Bitget｜ Bitget VIP—lower fees, bigger perks!