Bitcoin Prices May Increase Despite Traders Remaining Net-Long
THE PERCENT OF RETAIL TRADERS NET-LONG CONTINUE TO DECREASE
Bitcoin: Retail trader data shows 70.1% of traders are net-long with the ratio of traders long to short at 2.35 to 1. The percentage of traders net-long is now its lowest since Nov 28 when Bitcoin traded near 4200.66. The number of traders net-long is 1.6% lower than yesterday and 2.7% lower from last week, while the number of traders net-short is 14.0% higher than yesterday and 21.4% higher from last week.
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BITCOIN SENTIMENT SUGGESTS PRICE TREND MAY REVERSE
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Bitcoin prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current Bitcoin price trend may soon reverse higher despite the fact traders remain net-long.
--- Written by Nancy Pakbaz, CFA, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.