Short-term liquidation data shows that longs hold an absolute advantage, but attention should also be paid to:

◦ When short liquidations are coming to an end (subsequent short positions significantly decrease), the market lacks new buying interest (passive buy orders from short covering disappear), and prices may lose support.

◦ Extreme long-short imbalance often occurs in the middle or later stages of a trend, rather than at the beginning, so be cautious of the risk of chasing highs.