Bitcoin Faces Selling Pressure as Market Volatility Continues

Bitcoin (BTC) has experienced sharp price fluctuations, trading between $100,238.19 and $103,730.82 in the past 24 hours. Amid this volatility, CryptoQuant CEO Ki Young Ju has issued a cautionary warning to investors, citing increased taker sell pressure.

Taker sell pressure, which tracks market sell orders on exchanges, is rising as traders aggressively sell BTC at current market prices rather than setting limit orders. This trend signals bearish sentiment and could trigger a further price drop if selling pressure surpasses buy-side liquidity.

Young Ju advised leveraged traders to be cautious, emphasizing that sustained sell pressure might lead to significant liquidations. His concerns are backed by the BTC Taker Net Volume chart, which shows an uptick in selling activity over the past 72 hours.

At the time of writing, Bitcoin is trading at $101,066.42, reflecting a 0.84% decline in 24 hours, while trading volume has dropped 22.45% to $42.29 billion. If the downward trend continues, institutional buyers like MicroStrategy and Metaplanet, along with Bitcoin whales, may seize the opportunity to accumulate more BTC at lower prices.

As market sentiment remains uncertain, investors are advised to closely monitor liquidity levels and selling pressure to make informed trading decisions.