Bitcoin May Trend Higher Despite Sentiment
Bitcoin: Retail trader data shows 74.5% of traders are net-long with the ratio of traders long to short at 2.92 to 1. The number of traders net-long is 3.2% lower than yesterday and 3.7% lower from last week, while the number of traders net-short is 0.6% higher than yesterday and 6.7% 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
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