Despite Price Drop, Bitcoin Traders Are Further Net-Long
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Bitcoin: As per yesterday's sentiment analysis, Bitcoin largely fell throughout the trading day. Retail trader data shows 71.2% of traders are net-long with the ratio of traders long to short at 2.47 to 1. The number of traders net-long is 1.8% higher than yesterday and 6.2% lower from last week, while the number of traders net-short is 8.1% lower than yesterday and 5.1% 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 more net-long than yesterday but less 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.