Bitcoin analyst Willy Woo warns Bitcoin investors to be cautious despite the bullish trend in the market. Woo notes that the Bitcoin native risk model predicts very high levels of risk. Other sources also indicate that the overall crypto market is still bullish. However, the decline in the Bitcoin price and increased selling in altcoins could be an indication that the market may soon reverse. However, some analysts consider the drop to be a short-term bear moment. In particular, it suggests that growth may start earlier than expected.
Critical warning for Bitcoin price
Bitcoin analyst Willy Woo has issued a fair warning to Bitcoin traders that despite the bullish trend in the market, they should trade cautiously in the coming months as there is a high probability of a near-term reversal. Willy Woo wrote in his X post
Risk is peaking for the first time this cycle and there are a ton of profits in coins selling and a lot more profit-taking to go before we reset properly.
The analyst urges caution in the coming months as the Bitcoin market could soon reverse. Willy Woo notes that despite the market looking extremely bullish, investors should not dig deep in the coming months. Rather, he argues that they should be cautious instead. Woo pointed to the Bitcoin local risk model, which suggests very high levels of risk not experienced since 2023.
What do the indicators point to?
Other sources, including the Fear and Greed index, suggest that the overall crypto market is still bullish. The Fear and Greed index has always measured market sentiment for cryptocurrencies and altcoins. The index is currently at 69 points, 19 points higher than January 10, when it was neutral at 50. Bitcoin has already retraced its trades above $100,000 and is currently holding at $94,212, down 3.92% in the last week. This is evidence that a reversal could soon be significant and could hurt most traders.
While Woo’s advice should be heeded, not all analysts agree. Some believe the drop will be a short-term bear moment. Anonymous crypto trader Rekt Capital thinks otherwise in an X post on January 10. Rekt Capital said that the 15% drop from Bitcoin’s all-time high on December 17 is similar to previous patterns Bitcoin has shown. He also explained that the timing of the decline is in line with historical trends. Therefore, it may start growing earlier than expected. On the other hand, Jan3 CEO Samson Mow told his 327,000 X followers that all dips are fake if you know how to grasp the macro landscape. He also claimed that the dips are a creation aimed at driving down Bitcoin prices for rich players to buy.
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