Bitcoin: Weekly Short Positions Shrink 13% Prompting Bearish Bias
85% of Retail Traders are Net-Long
Bitcoin: Retail trader data shows 85.2% of traders are net-long with the ratio of traders long to short at 5.74 to 1. The number of traders net-long is 0.2% lower than yesterday and 4.9% higher from last week, while the number of traders net-short is 1.1% lower than yesterday and 13.1% lower from last week.
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Bitcoin Sentiment Sparks 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. 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.