Sentiment Towards Bitcoin Shifts Signaling a Strong Contrarian Bias
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Bitcoin: Retail trader data shows 74.1% of traders are net-long with the ratio of traders long to short at 2.87 to 1. The number of traders net-long is 2.9% higher than yesterday and 2.2% higher from last week, while the number of traders net-short is 10.0% lower than yesterday and 6.7% 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. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger Bitcoin-bearish contrarian trading bias.
--- Written by Dylan Jusino, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.