Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
In a recent tweet, CryptoQuant CEO Ki Young Ju sent out a warning to Bitcoin traders, highlighting potential market movements and urging caution, especially for those using leverage.
The CryptoQuant CEO warned that Bitcoin might experience a pullback or move sideways for months. This signals that the current bullish momentum could slow down, 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.
Tomiwabold OlajideIn line with this, Ju urges caution for those trading with leverage. Leveraged trading can boost 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 forcefully closes a trader's leveraged position because the trader was unable to meet the margin requirements. Large-scale liquidations may imply market extremes, such as panic selling or purchasing.
Bitcoin price action
Following two months of consolidation, Bitcoin broke out of its range and reached a new all-time high of $109,358 on Jan. 20.
The launch of a Securities and Exchange Commission task force on U.S. digital-asset regulations helped to lift the markets at the start of 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 businesses.
Bitcoin traded at about $105,076, up 1.29% in the last 24 hours and slightly below the record high of $109,358 set on Monday. The rest of the crypto market was mixed in early Monday's trading session.
On the macroeconomic front, investors are awaiting economic data on Wednesday, which might provide clues as to the outlook of the economy.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
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