The post Bitcoin Faces Increased Risk as Analyst Warns Against Long Positions appeared on BitcoinEthereumNews.com. Key Points: Bitcoin’s long position potentialThe post Bitcoin Faces Increased Risk as Analyst Warns Against Long Positions appeared on BitcoinEthereumNews.com. Key Points: Bitcoin’s long position potential

Bitcoin Faces Increased Risk as Analyst Warns Against Long Positions

Key Points:
  • Bitcoin’s long position potential is currently diminished.
  • Market caution urged due to ETF-related liquidity pressures.
  • Historical price cycles offer insight into current market risks.

Chinese crypto analyst Ban Mu Noon indicated on December 23 that Bitcoin’s attractiveness for long positions has diminished due to recent ETF selling pressure weakening liquidity conditions.

This assessment underscores increased risk in Bitcoin trading, suggesting traders observe ongoing market consolidation before participating, potentially impacting Bitcoin’s price movement and influencing investor strategies.

Caution Urged as Market Dynamics Evolve

Ban Mu Noon highlighted that Bitcoin’s potential for long positions has diminished, citing weakened mid-term liquidity due to continuous ETF-related pressure. He emphasized that while opportunity remains in potential uptrends, the risks have elevated within the current liquidity and price adjustments. Ban Mu Noon, a Chinese Crypto Analyst and KOL, posted on Twitter,

With liquidity dynamics under scrutiny, analysts and investors note significant impacts on market sentiment. The ongoing ETF selling has added caution to the investment landscape, prompting broader scrutiny around liquidity impacts and resulting in heightened market adjustments.

Historical Context, Price Data, and Expert Insights

Did you know? Bitcoin’s market consolidation phase mirrors previous cycles marked by significant risks and opportunities. This reflects cycles in 2011, 2017, 2020, and 2022, often followed by substantial corrections.

Bitcoin (BTC) is priced at $87,591.05 with a market cap of $1.75 trillion and a trading volume exceeding $36.77 billion, per CoinMarketCap. BTC experienced a 1.29% 24-hour price decrease, while its 90-day performance reflects a 22.34% drop, suggesting ongoing volatility.

Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 06:13 UTC on December 23, 2025. Source: CoinMarketCap

Coincu’s research suggests that despite current price challenges, long-term valuations remain optimistic. The scrutiny over Bitcoin’s liquidity may prompt significant regulatory interest, shaping market strategies and innovation within the cryptocurrency sector.

Source: https://coincu.com/markets/bitcoin-risk-long-positions/

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