Bitcoin Sentiment Doesn’t Give Clear Signal
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Bitcoin: Retail trader data shows 72.9% of traders are net-long with the ratio of traders long to short at 2.69 to 1. The number of traders net-long is 1.0% higher than yesterday and 3.3% higher from last week, while the number of traders net-short is 4.2% lower than yesterday and 5.9% 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