Despite the fact that bitcoin lost over 70% of its value in 2018 and the market has lost about $700 billion, bitcoin investors still remain net-invested in the cryptocurrency. In fact, DailyFX research shows that interest in bitcoin is growing with the analysis showing the highest interest level since November 2018.
Fan Xu, research analyst at DailyFX writes in a Jan. 2 research post: “Bitcoin: Retail trader data shows 77.5% of traders are net long with the ratio of traders long to short at 3.44 to 1. The number of traders net long is 0.4% lower than yesterday and 6.2% higher from last week, while the number of traders net short is 2.7% lower than yesterday and 6.4% lower from last week.”
However, according to Fan Xu, the data does not point towards bitcoin prices rising anytime soon, as Xu takes a contrarian view on the situation.
“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,” she said.