Bitcoin May Be Headed Lower on Trader Sentiment
Bitcoin: Retail trader data shows 78.4% of traders are net-long with the ratio of traders long to short at 3.64 to 1. The number of traders net-long is 7.7% higher than yesterday and 1.5% lower from last week, while the number of traders net-short is 5.5% lower than yesterday and 8.8% 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