Bitcoin: Sentiment Prompts a Mixed Signal
NET-LONG TRADERS INCREASED FROM LAST WEEK
Bitcoin: Retail trader data shows 75.1% of traders are net-long with the ratio of traders long to short at 3.02 to 1. The number of traders net-long is 2.5% higher than yesterday and 2.4% higher from last week, while the number of traders net-short is 2.1% higher than yesterday and 6.3% higher from last week.
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BITCOIN SUGGESTS AN UNCLEAR DIRECTION
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 Nancy Pakbaz, CFA, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.