Bitcoin Faces Increased Risk as Analyst Warns Against Long Positions

2 mins mins

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.

“Bitcoin has reached a point where it is no longer a good opportunity for long positions. The mid-term liquidity logic has also been weakened by the recent continuous ETF selling pressure. This is not the best opportunity for long positions, but that doesn’t mean there won’t be an uptrend later, it just means that the risk is increasing. During the adjustment phase, if it is not a very high probability opportunity, there is no need to participate, continue to observe the market’s complex consolidation.”

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-daily-chart-5231 — 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.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.