Bitcoin May Trade Higher Despite Sentiment
Bitcoin: Retail trader data shows 76.3% of traders are net-long with the ratio of traders long to short at 3.22 to 1. The number of traders net-long is 4.9% lower than yesterday and 4.8% higher from last week, while the number of traders net-short is 3.7% lower than yesterday and 16.9% 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. 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.
--- Written by Dylan Jusino, DailyFX Research