Bitcoin Set to Rise on Strong Trader Sentiment
Bitcoin: Retail trader data shows 68.7% of traders are net-long with the ratio of traders long to short at 2.2 to 1. The number of traders net-long is 7.5% lower than yesterday and 16.7% lower from last week, while the number of traders net-short is 18.2% higher than yesterday and 6.5% 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. 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.