Bitcoin Prices May Continue to Fall
75.2% OF TRADERS ARE NET-LONG
Bitcoin: Retail trader data shows 75.2% of traders are net-long with the ratio of traders long to short at 3.04 to 1. The number of traders net-long is 1.6% lower than yesterday and 0.8% lower from last week, while the number of traders net-short is 1.8% lower than yesterday and 1.5% lower from last week.
Be sure to check out our Bitcoin Trading Guide if you're new to cryptocurrencies!
BITCOIN SUGGESTS 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 Nancy Pakbaz, CFA, DailyFX Research
Follow Nancy on Twitter @NancyPakbazFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.