TRADERS REMAIN NET-LONG
Bitcoin: Retail trader data shows 78.1% of traders are net-long with the ratio of traders long to short at 3.56 to 1. The number of traders net-long is 0.5% higher than yesterday and 3.3% lower from last week, while the number of traders net-short is unchanged than yesterday and 2.7% higher from last week.
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BITCOIN: SENTIMENT PROMPTS A BEARISH TRADING 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