Bitcoin: Bearish Bias Remains as Traders Chase Bounce
80% of Retail Traders Stay Net-Long
Bitcoin: Retail trader data shows 80.3% of traders are net-long with the ratio of traders long to short at 4.07 to 1. The number of traders net-long is 0.2% lower than yesterday and 2.1% higher from last week, while the number of traders net-short is 14.6% lower than yesterday and 8.6% lower from last week.
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Bitcoin Sentiment Indicates a Strong 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. 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 Jake Schoenleb, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.