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Bullish Signals for Bitcoin Price and Ether Price, Bearish for Ripple and Litecoin

Bullish Signals for Bitcoin Price and Ether Price, Bearish for Ripple and Litecoin

2018-03-01 11:15:00
Martin Essex, MSTA, Analyst and Editor
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Cryptocurrency talking points:

- IG Client Sentiment data are pointing to price rises for cryptocurrencies Bitcoin and Ether.

- However, the figures are negative for Ripple and Litecoin prices.

Learn how to trade like an expert by reading our guide to the Traits of Successful Traders

Bullish Bitcoin signal

The latest IG Client Sentiment data show 71.2% of traders are net-long Bitcoin, with the ratio of traders long to short at 2.47 to 1. The number of traders net-long is 2.8% lower than yesterday and 8.4% lower from last week, while the number of traders net-short is 6.5% higher than yesterday and 2.3% lower from last week.

At DailyFX, we typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Bitcoin prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current Bitcoin price trend may soon reverse higher despite the fact traders remain net-long.

Bitcoin price chart shows trend may soon reverse higher

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Ether price may rise

Turning to Ether, the retail trader data show 90.6% of traders are net-long, with the ratio of traders long to short at 9.61 to 1. In fact, traders have remained net-long since July2007, when Ether traded near 244.56; the price has moved 252.8% higher since then. The number of traders net-long is 2.1% lower than yesterday and 0.7% lower from last week, while the number of traders net-short is 5.0% higher than yesterday and 1.4% higher from last week.

The fact traders are net-long suggests Ether prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current Ether price trend may soon reverse higher despite the fact traders remain net-long.

Ether price chart shows trend may reverse higher

Here’s where to check out the IG Client Sentiment data

Negative for Ripple

For Ripple, the trader data show 96.2% of traders are net-long, with the ratio of traders long to short at 25.47 to 1. In fact, traders have remained net-long since December 25, when Ripple traded near 2.49; the price has moved 64.4% lower since then. The number of traders net-long is 0.6% lower than yesterday and 1.4% higher from last week, while the number of traders net-short is 1.0% lower than yesterday and 3.9% lower from last week.

The fact traders are net-long suggests Ripple prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger Ripple-bearish contrarian trading bias.

Ripple price chart shows prices may fall

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Litecoin price may fall

For Litecoin, the retail trader data show 90.0% of traders are net-long, with the ratio of traders long to short at 8.98 to 1. In fact, traders have remained net-long since December 25, when Litecoin traded near 253.95; the price has moved 19.4% lower since then. The number of traders net-long is 0.6% lower than yesterday and 3.5% lower from last week, while the number of traders net-short is 4.2% lower than yesterday and 4.2% lower from last week.

As stated earlier, we typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Litecoin prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger Litecoin-bearish contrarian trading bias.

Litecoin price chart shows prices may fall

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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