Bitcoin May Be Running Out of Steam

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Bitcoin: Retail trader data shows 72.7% of traders are net-long with the ratio of traders long to short at 2.66 to 1. The number of traders net-long is 0.7% lower than yesterday and 2.1% lower from last week, while the number of traders net-short is 0.8% lower than yesterday and 1.4% 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. 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