Fundamental analysis and financial markets. News and Talking Points – Bitcoin and Ripple are testing important support levels – Litecoin continues to battle the recent sell-off and may out-perform its peers.
Cryptocurrency traders should read the Traits of Successful Traders guide to find out about market ‘best practice’ The ongoing cryptocurrency sell-off has pushed Bitcoin to the bottom of a noted support zone with a break and close below this opening the way to the next level of support nearly $800 lower. Price action is still respecting the down channel from the December 17 high, while Sunday’s close in the highlighted Zone One on the chart below also suggest further Bitcoin weakness ahead.
On the upside, $9,900 is the first resistance ahead of $10,680 – the bottom of Zone Two – and the 61.8% Fibonacci retracement level at $10,971. Bitcoin Price Chart Daily Time Frame (September 19, 2017 – February 26, 2018) IG Client Sentiment data show 71.2% of traders are net-long with the ratio of traders long to short at 2.47 to 1.
The number of traders net-long is 3.8% higher than yesterday and 7.1% lower from last week, while the number of traders net-short is 0.5% higher than yesterday and 15.9% higher 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.
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. Read more from dailyfx.com…
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