A Bitcoin analyst has cautioned crypto market participants to remain vigilant in the coming months, citing expectations of continued profit-taking.
“Risk is peaking for the first time in this cycle, and there’s a ton of profit in coins that have been selling and plenty more profit-taking to go before we are properly reset,” Bitcoin analyst Willy Woo stated in a Jan. 10 X post.
Willy Woo Recommends Caution
Woo emphasized that while Bitcoin sentiment “seems uber bullish,” a more “cautious approach” is warranted in the short term.
His Bitcoin local risk model, which tracks risk levels, shows metrics not seen since January 2023.
The overall market sentiment remains in the “Greed” zone, according to the Fear and Greed Index, which recorded a score of 69 on Jan. 10—an increase from the “Neutral” score of 50.
Bitcoin has struggled to regain the $100,000 psychological level since retracing on Jan. 8 and is currently trading at $94,120, down 3.92% over the past week, according to CoinMarketCap.
Diverging Views on Bitcoin’s Path Forward
Other analysts offer a more optimistic perspective.
Pseudonymous crypto trader Rekt Capital noted that Bitcoin’s 15% pullback from its Dec. 17 all-time high of $108,000 mirrors historical patterns observed in prior cycles.
“The timing of this retrace is in line with historical tendencies,” Rekt said, adding that the current situation has a “high probability of reversal.”
Similarly, Jan3 CEO Samson Mow highlighted the influence of macroeconomic factors, suggesting that dips are “manufactured to lower the Bitcoin price for the big players.”
“If you understand the macro landscape, you understand that all dips are fake now,” Mow told his 327,000 X followers.
Despite mixed outlooks, market participants remain watchful for further developments.
