Bitcoin Faces Leverage Risks as Taker Sell Pressure Climbs, Analysts Warn

• Leveraged traders face liquidation risks if sell orders outpace buys, per CryptoQuant’s 72-hour net volume chart.
• Market split on Bitcoin’s trajectory: short-term caution clashes with long-term accumulation strategies as sell pressure climbs.

Bitcoin fluctuated between $100,238 and $103,730 in the past 24 hours, reflecting ongoing volatility in crypto markets. Ki Young Ju, CEO of analytics firm CryptoQuant, alerted traders to rising “taker sell pressure”, a metric tracking immediate sell orders executed at current market prices. 

This trend signals heightened bearish sentiment, as traders bypass limit orders to offload Bitcoin quickly. Young Ju emphasized that sustained selling could overwhelm buy-side liquidity, potentially accelerating price declines.  

In a post on X , Young Ju shared a chart of Bitcoin’s Taker Net Volume, highlighting a 72-hour moving average that confirms the uptick in aggressive selling. He cautioned leveraged traders—those using borrowed funds—to reassess positions, noting that abrupt price drops could trigger cascading liquidations.

At press time, Bitcoin trades at $101,066, down 0.84% in 24 hours, with trading volume falling 22% to $42.29 billion.  

The warning targets speculative traders employing margin or futures contracts

Excessive leverage magnifies losses during downturns, as exchanges automatically close positions if collateral values drop below required thresholds. Young Ju’s analysis aligns with historical patterns where rapid sell-offs led to forced exits among overexposed participants.  

Market observers suggest institutional entities, such as Metaplanet and MicroStrategy , may exploit price dips to accumulate Bitcoin at lower costs. Large holders could similarly absorb excess supply if retail traders exit.

However, these potential buy-side actions contrast with immediate risks flagged by Young Ju, underscoring divergent strategies in crypto markets.  

Bitcoin’s current volatility coincides with macroeconomic uncertainty, including evolving regulatory proposals and shifting capital flows. While some investors view corrections as entry points, others interpret rising taker sell pressure as a signal to reduce exposure.

Young Ju’s alert does not predict specific price levels but stresses the importance of risk management. Traders using leverage face amplified vulnerability during erratic price swings, while spot buyers—those holding Bitcoin outright—retain flexibility to wait out turbulence.  

The next phase hinges on whether sell pressure stabilizes or intensifies

Institutional accumulation and whale activity may buffer declines, but leveraged traders remain at risk if volatility persists. As takers sell volume trends upward, market participants face decisions that could shape Bitcoin’s near-term trajectory , balancing short-term caution against longer-term positioning in a still-nascent asset class.