Bitcoin clinches to $3,300 amid traders exodus
|- The short-term technical picture implies rangebound trading.
- Traders reduce the exposure to the cryptocurrency market and bet on further declines.
Bitcoin is sidelined marginally above $3,300 handle which serves as local support that separates the price from the recent low of $3,211.
Bearish sentiments continue to dominate the market and shape the trend for the digital coin No.1 both on the spot and on the futures market. The Cboe Global Markets December contract finished Tuesday down 1.2% at $3,340, while CME Group December contract lost 0.7% to $3,350.
Meanwhile, traders are reducing their exposure to Bitcoin, according to the stats provided by DailyFX experts.
“Retail trader data shows 70.1% of traders are net-long with the ratio of traders long to short at 2.35 to 1. The percentage of traders net-long is now its lowest since Nov. 28 when bitcoin traded near $4,200.66,” Nancy Pakbaz, analysts at DailyFX, explains.
“The number of traders net-long is 1.6% lower than yesterday and 2.7% lower from last week, while the number of traders net-short is 14.0% higher than yesterday and 21.4% higher from last week.”
Bitcoin's short-term technical picture
On the intraday charts, BTC/USD is supported by the lower line of Bollinger Band (1-hour chart) at $3,314, which is followed by psychological $3,300. A sustainable move below will push the price towards the recent low of $3,211.
On the upside, a tough hurdle is created by $3,400, strengthened by SMA50, SMA100 and the upper line of Bollinger Band (1-hour chart). Once this barrier is cleared, BTC/USD may extend the upside towards $3,500.
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