Bitcoin May Fall on Bearish Sentiment
Bitcoin: Retail trader data shows 64.0% of traders are net-long with the ratio of traders long to short at 1.78 to 1. The number of traders net-long is 2.4% higher than yesterday and 8.4% lower from last week, while the number of traders net-short is 9.4% lower than yesterday and 18.9% lower from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Bitcoin 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 Bitcoin-bearish contrarian trading bias.
--- Written by Dylan Jusino, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.