BITCOIN TSUNAMI IMMINENT: Warning Signs Ignored at Your Own Peril

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Well, this is just what we all needed – a healthy dose of caution from the CryptoQuant CEO, Ki Young Ju. In a recent tweet, he’s basically telling Bitcoin traders to buckle up, because the party might be over sooner rather than later.

Now, I know what you’re thinking: “Bill, what’s the big deal? Bitcoin’s still going up, up, up!” And you’re right, it is. But, as Ju so wisely puts it, “Not sure the bull cycle is over as other on-chain indicators remain bullish.” In other words, the current momentum might slow down, leading to a period of consolidation or a minor pullback. Joy.

#Bitcoin might pull back or move sideways for months.

Not sure the bull cycle is over as other on-chain indicators remain bullish.

Just be cautious if you’re leveraged.

— Ki Young Ju (@ki_young_ju) January 22, 2025

Despite the warning, Ju’s still unsure 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. It’s like they say: “When life gives you lemons, make lemonade. When life gives you mixed signals, just shrug and say, ‘Meh, I’ll just trade with leverage and hope for the best’.”

And that’s exactly what Ju is urging caution against – trading with leverage. I mean, who needs to be cautious when you can just boost your profits and increase the risk of significant losses? It’s like a game of roulette, but without the fun of actually having a chance of winning.

A liquidation, for those who don’t know, is when an exchange forcefully closes a trader’s leveraged position because the trader was unable to meet the margin requirements. It’s like when your credit card company decides to cut you off because you’ve been living beyond your means. But, you know, with more money involved.

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. Because, you know, what’s a little consolidation when you can just break out and reach new heights? It’s like the ultimate thrill ride – until you realize you’re just a tiny speck in a vast ocean of volatility.

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. Because, who doesn’t love a good regulatory framework to give them a sense of security? It’s like having a safety net, but without the safety part.

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. Because, you know, when one market goes up, the others just shrug and say, “Meh, I’ll just do my own thing.”

On the macroeconomic front, investors are awaiting economic data on Wednesday, which might provide clues as to the outlook of the economy. Because, you know, who doesn’t love a good mystery to solve? It’s like a game of economic whodunit, but without the fun of actually having any answers.

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2025-01-22 16:44