PakGazette – In a recent tweet, CryptoQuant CEO Ki Young Ju sent a warning to traders, highlighting potential market moves and urging caution, especially for those using leverage.
The CEO of CryptoQuant warned that Bitcoin could experience a pullback or move sideways for months. This indicates that the current bullish momentum could slow, leading to a period of consolidation or a minor pullback.
Despite the warning, Ju expressed uncertainty about the end of the current bull cycle. According to CryptoQuant, other on-chain indicators remain bullish, indicating that the long-term outlook for Bitcoin remains positive. This mixed signal highlights the speculative nature of predicting market movements and the importance of considering multiple factors.
In line with this, Ju recommends caution to those who trade with leverage. Leveraged trading can increase profits but also increase the risk of significant losses. In volatile markets, leveraged positions could be vulnerable to liquidations.
A liquidation occurs when an exchange forcibly closes a trader’s leveraged position because the trader was unable to meet margin requirements. Large-scale liquidations can involve market extremes, such as panic buying or selling.
Bitcoin price action
After two months of consolidation, Bitcoin broke out of its range and hit a new all-time high of $109,358 on January 20.
The launch of a Securities and Exchange Commission task force on US digital asset regulations helped lift markets earlier in the week. The task force will create a “comprehensive and clear” regulatory framework and will be chaired by Hester Peirce, the SEC commissioner known as “Crypto Mom” for her opposition to SEC enforcement proceedings against cryptocurrency companies.
Bitcoin was trading at around $105,076, up 1.29% over the past 24 hours and slightly below the all-time high of $109,358 set on Monday. The rest of the cryptocurrency market was mixed early in the trading session on Monday.
On the macroeconomic front, investors await economic data on Wednesday, which could provide clues about the outlook for the economy.
