Bitcoin: Prices May Continue to Drop as Short Positions Grow
78% of Retail Traders Stay Net-Long
Bitcoin: Retail trader data shows 78.3% of traders are net-long with the ratio of traders long to short at 3.61 to 1. The number of traders net-long is 2.8% lower than yesterday and 0.8% lower from last week, while the number of traders net-short is 0.9% higher than yesterday and 1.4% lower from last week.
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Bitcoin Sentiment Indicates a Bearish Bias
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 less net-long than yesterday and last week. The combination of current sentiment and recent changes gives us a bearish Bitcoin trading bias.
--- Written by Jake Schoenleb, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.