Net-Long Positions Decreased from Last Week
Bitcoin: Retail trader data shows 79.9% of traders are net-long with the ratio of traders long to short at 3.97 to 1. The number of traders net-long is 3.8% lower than yesterday and 8.3% lower from last week, while the number of traders net-short is 1.5% lower than yesterday and 1.5% lower from last week.
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BITCOIN: SENTIMENT SUGGESTS THAT THE PRICE TREND MAY SOON 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
Follow Nancy on Twitter @NancyPakbazFX