Published On: Thu, Jan 11th, 2018

Bitcoin May Be Headed Lower on Trader Sentiment

Bitcoin May Be Headed Lower on Trader Sentiment

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Bitcoin: Retail trader data shows 78.4% of are net-long with the ratio of long to short at 3.64 to 1. The number of net-long is 7.7% higher than yesterday and 1.5% lower from last week, while the number of net-short is 5.5% lower than yesterday and 8.8% lower from last week.

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 Dylan Jusino, DailyFX Research

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