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.
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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.
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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.
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.
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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.
--- 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
