Trader Sentiment Suggests Bitcoin Slump Could Continue
Bitcoin: Retail trader data shows 79.0% of traders are net-long with the ratio of traders long to short at 3.77 to 1. The number of traders net-long is 8.0% higher than yesterday and 16.2% higher from last week, while the number of traders net-short is 4.8% higher than yesterday and 0.5% 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.