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.
In 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.
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.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
