The recent decline in Bitcoin's price is attributed to excessive leveraged positions and low market momentum, analysts suggest.

Leverage and Momentum Decline

On-chain analyst XBTManager indicates a decrease in Bitcoin’s cumulative volume difference (CVD), reflecting the purchasing power of retail investors on exchanges. Currently, Bitcoin is at a significant resistance level and is at a critical juncture. If it can surpass this level, it may have the potential to set a new record.

Warning of Excessive Leverage

According to CoinGecko, the spot trading volume on major exchanges fell by 14.8% in Q3 2024. CryptoQuant CEO Ki Young Ju states that leverage ratios in the Bitcoin-USDT futures market have reached historical peaks. Excessive leverage is often seen as a precursor to significant price fluctuations. Analyst Axel Adler Jr suggests that surpassing a leverage ratio of 55% could lead to widespread liquidations.

Expectations of a Supercycle in Memecoins

Memecoin analyst Murad Mahmudov claims a long-term growth cycle for memecoins could occur. According to Mahmudov, the growth of these assets is driven by community support and investors chasing short-term gains. If this cycle happens, 2025 could be a year of parabolic growth for memecoins.

Future prospects for Bitcoin and memecoins remain uncertain. Increasing leverage ratios and weak buying pressure create uncertainty regarding Bitcoin’s short-term movements.