PK Press Club – In a recent tweet, Ki Young Ju, CEO of CryptoQuant, sent a warning to traders, highlighting potential market movements and urging caution, especially for those using leverage.
CryptoQuant CEO warned that Bitcoin could see a pullback or move sideways for months. This indicates that the current bullish momentum could slow down, leading to a period of consolidation or a slight pullback.
Despite this 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 forecasting market movements and the importance of taking multiple factors into account.
With this in mind, Ju urges caution for those trading with leverage. Trading with leverage can increase profits but also increase the risk of significant losses. In volatile markets, leveraged positions could be vulnerable to liquidation.
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 may involve market extremes, such as panic selling or buying.
Bitcoin Price Action
After two months of consolidation, Bitcoin broke out of its range and reached a new all-time high of $109,358 on January 20.
The launch of a Securities and Exchange Commission task force on US regulation of digital assets helped lift markets earlier this 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 crypto companies -cash.
Bitcoin is trading at around $105,076, up 1.29% over the past 24 hours and slightly below the record high of $109,358 set on Monday. The rest of the crypto market was mixed at the start of Monday’s trading session.
On the macroeconomic front, investors are awaiting economic data on Wednesday that could provide clues about the economy’s outlook.
