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Amid the ongoing price volatility on the cryptocurrency market, Bitcoin (BTC) has had its fair share of fluctuations. The leading digital asset has traded between $100,238.19 and $103,730.82 in the past 24 hours. This has prompted Ki Young Ju, CEO of CryptoQuant, to issue a significant warning to investors.
Rising taker sell pressure sparks concern
In an update shared on X, Young Ju noted that Bitcoin’s taker sell pressure, a metric that monitors market sell orders on exchanges, is increasing. This suggests that more market participants are engaging in aggressive Bitcoin sales.
Yuri MolchanRemarkably, these traders are offloading the asset at the current market price and not placing limit sell orders. Experts say this hints at bearish sentiment among investors and could trigger a huge price decline.
This prediction of a likely price decline could occur if the selling pressure on Bitcoin surpasses buy-side liquidity. Hence, Young Ju has sounded the alarm to Bitcoin investors in a leveraged position.
Young Ju warned, "Be cautious if you're leveraged." He supported his Bitcoin update with the BTC Taker Net Volume chart, indicating the 72-hour MA.
This warning targets traders using borrowed funds to amplify their Bitcoin positions. Young Ju appears to suggest that these investors need to reevaluate their assets. If such selling pressure continues, a BTC price drop could lead to serious liquidations with low value as the endpoint.
Will institutional Bitcoin buyers seize opportunity?
Tomiwabold OlajideAs of this writing, the BTC price was changing hands at $101,066.42, representing a 0.84% decline in the last 24 hours. Bitcoin’s trading volume has declined by 22.45% to $42.29 billion.
Market observers note that if Young Ju’s prediction happens, corporate buyers like Metaplanet and MicroStrategy might use the opportunity to shore up their BTC holdings again. Bitcoin whales might also snap up the coins dumped onto the market.
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.
Vladislav Sopov
Tomiwabold Olajide
Dan Burgin