Most Traders Are Long On Bitcoin As It Continues to Plummet
Bitcoin: Retail trader data shows 74.5% of traders are net-long with the ratio of traders long to short at 2.93 to 1. The number of traders net-long is 1.5% lower than yesterday and 9.8% higher from last week, while the number of traders net-short is 6.9% higher than yesterday and 8.7% 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. Positioning is less net-long than yesterday but more net-long from last week. The combination of current sentiment and recent changes gives us a further mixed Bitcoin trading bias.
--- Written by Dylan Jusino, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.