CryptoQuant Analyst Advises to Set Short-term Targets As Fear of More Liquidations Looms
The recent plunge in Bitcoin’s (BTC) price has had a devastating impact on long position holders. The sudden fall in BTC price last week triggered the largest liquidation event in over a year, according to a CryptoQuant analyst. The dramatic decline has caused significant financial losses for investors who had bet on Bitcoin’s price rise.
CryptoQuant Analyst Warns of Prolonged Recovery Period After Massive BTC Liquidations
The analyst noted that the recent BTC price plunge has been devastating for long position holders, with the size of the long liquidation being the largest in the past year. The long squeeze, which forces investors to sell off their long positions at a loss, has also been significant.
Despite the severe impact of the market crash, the analyst warned against expecting an immediate rebound in Bitcoin’s price. Historical data suggests that it can take several months for the market to recover from such significant liquidations. The analyst pointed out that it took a couple of months, from August to October in 2023, before the price started to bounce back.
Analyst Recommends Cautious Investment Approach Amid Volatile Market Conditions
Given the current market conditions, the CryptoQuant analyst advised investors to adopt a more conservative approach, recommending that they invest with the mindset of being less greedy and more cautious for the time being.
The market remains highly volatile, and while past trends provide some insight, caution and prudent investment strategies are essential in navigating the current crypto landscape.
