Willy Woo urges caution as Bitcoin’s risk model hits levels unseen since early 2023, signaling profit-taking ahead.
Analyst Warns of Peaking Bitcoin Risk
Bitcoin analyst Willy Woo has cautioned traders about rising risk levels in the cryptocurrency market. Woo’s Bitcoin risk model, which measures potential market volatility, has reached levels not seen since January 2023.
Cautious Approach Recommended
Woo advised traders to adopt a cautious strategy in the coming months, despite bullish sentiment around Bitcoin. “Risk is peaking for the first time in this cycle, and there’s plenty of profit-taking yet to occur,” he said on Jan. 10.
Market Sentiment Signals ‘Greed’
The Fear and Greed Index currently reflects a “Greed” score of 69, up significantly from its neutral position of 50 earlier this month. This suggests that despite Woo’s warnings, the market remains optimistic.
Bitcoin Faces Resistance Below $100K
Bitcoin retraced from the $100,000 psychological level on Jan. 8 and has struggled to break back above. As of now, Bitcoin is trading at $94,120, down 3.92% over the past week, according to CoinMarketCap.
Other Analysts Predict Price Reversal
Not all analysts share Woo’s caution. Pseudonymous trader Rekt Capital noted that Bitcoin’s recent 15% pullback mirrors patterns from previous market cycles. He stated that such retraces often signal a “high probability of reversal.”
Macro Landscape and Market Manipulation
Jan3 CEO Samson Mow offered a different perspective, asserting that market dips are artificial. “If you understand the macro landscape, you understand that all dips are fake now,” Mow wrote on Jan. 10, suggesting that major players are manipulating prices for strategic gains.
Potential Rebound Ahead?
While Woo’s caution highlights risks, other traders see opportunity. The divergence in analyst perspectives underscores the complex dynamics of the current crypto market, leaving investors to weigh optimism against prudence.
Disclaimer:
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