Sentiment Suggests Bitcoin May Struggle to Gain Solid Footing
Bitcoin: Retail trader data shows 71.1% of traders are net-long with the ratio of traders long to short at 2.46 to 1. The number of traders net-long is 1.1% lower than yesterday and 1.0% lower from last week, while the number of traders net-short is 2.0% higher than yesterday and 13.8% lower 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