Bitcoin (BTC/USD) and Ripple (XRP/USD) Price, Analysis and Chart:
Bitcoin has been on a wild, bullish ride of late, hitting a fresh all-time high yesterday just under $35,000 before slumping back below $28,000 today in a flash sell-off. The market has regained some composure and is trading around $30,000, but volatility levels are back at the highs seen in late-2017/early-2018 when the market soared before slumping. This time around there are more bullish arguments for Bitcoin, notably the Fed printing more US dollars and increased Bitcoin take-up by institutional investors, so any further sell-off is likely to be limited.
The Bitcoin rally also produced a delayed rally in the rest of the market – altcoins – with some seeing gains of around 50% in a 48-hour period. Altcoins traditionally play catch-up to Bitcoin and all of them are still some distance below their late 2017/early 2018 all-time highs, suggesting that this rally may have more room to run.
Bitcoin (BTC/USD) Daily Price Chart (June – January 4, 2021)
Retail trader data show72.45% of traders are net-long with the ratio of traders long to short at 2.63 to 1.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.
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