Bitcoin May Fall Further Despite Tough Week
Bitcoin: Retail trader data shows 69.6% of traders are net-long with the ratio of traders long to short at 2.29 to 1. The number of traders net-long is 1.7% lower than yesterday and 46.0% higher from last week, while the number of traders net-short is 20.3% lower than yesterday and 2.6% higher 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