Bitcoin 
$67,355‘s recent price decline is attributed to overleveraged positions and low market momentum. According to analysts, this decline is due to the internal dynamics of the market.
Leverage and Momentum Decline
On-chain analyst XBTManager states that Bitcoin’s spot cumulative volume difference (CVD) has decreased. CVD reflects the buying power of retail investors on stock markets. However, the analyst says retail investors are not supporting rising prices and are selling at higher levels. This means that demand for Bitcoin has weakened.
Bitcoin is currently at an important resistance level and at a critical juncture. If it can surpass this level, there is a possibility of breaking a new record.
Warning of Excessive Leverage in the Market
Spot trading volume on major exchanges fell 14.8% in the third quarter of 2024, according to data from CoinGecko. CryptoQuant CEO Ki Young Ju states that the leverage ratio in the Bitcoin-USDT futures market has reached historical highs. Excessive leverage is often considered a harbinger of large price fluctuations. Analyst Axel Adler Jr suggests that leverage exceeding 55% could lead to widespread liquidations.
Supercycle Expectation in Memecoins
Memecoin analyst Murad Mahmudov claims that there may be a long-term growth cycle in memecoins. According to Mahmudov, the growth of these assets is driven by community support and investors seeking short-term profits. If this cycle happens, 2025 could be a year of parabolic rise for memecoins. Memecoin market value is currently at $62 billion, increasing by 3.7% in the last 24 hours.
The Future of Bitcoin and Memecoins
Although Bitcoin is trading slightly above September lows, the market still appears to be unstable. Analysts are considering the possibility of Bitcoin falling to the support level. On the other hand, memecoins continue to thrive with community support. This indicates that new opportunities may arise for investors.
Increasing leverage and weak buying pressure create uncertainty about how Bitcoin will move in the short term. In contrast, memecoins may be poised for a new wave of growth.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
