Bitcoin Reversal in Play On Key Shift in Sentiment
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Bitcoin: Retail trader data shows 71.9% of traders are net-long with the ratio of traders long to short at 2.56 to 1. The number of traders net-long is 1.7% lower than yesterday and 1.5% lower from last week, while the number of traders net-short is 0.7% higher than yesterday and 12.0% 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.