<ul><li>Open Interest (OI) and the Long/Short Ratio (LSR) are critical indicators to track leveraged positions in the crypto market.</li><li>Scenario 1: Rising Open Interest and Long/Short Ratio signal growing optimism but also pose the risk of a sudden reversal.</li><li>Scenario 2: Falling Open Interest and Long/Short Ratio indicate a cautious or bearish sentiment with potential for a bullish reversal.</li><li>Scenario 3: Rising Open Interest but falling Long/Short Ratio may lead to forced liquidations and a high probability of a bullish reversal.</li><li>Scenario 4: Falling Open Interest but rising Long/Short Ratio suggest a lack of strong conviction among bullish traders, leading to vulnerability if support levels fail.</li></ul>

Leverage in the Crypto Market: Understanding the Four Key Scenarios

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