Bitcoin analyst warns of heightened risk as market faces profit-taking phase

Bitcoin analyst Willy Woo has given a fair warning to Bitcoin traders that despite bullish market sentiments, they should trade cautiously in the months ahead due to the high possibility of reversal in the near term.

In his X post, Willy Woo wrote: “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.”

Analyst calls for caution in the coming months since Bitcoin market may soon reverse

Willy Woo maintains that despite the market’s seeming uber-bullish, traders should not go in deeply in the months ahead; rather, they should be cautious. He pointed to his Bitcoin local risk model, which suggests very high-risk levels that have not been experienced since 2023.

Other sources, including the Fear and Greed index, indicate the overall crypto market is still bullish. The Fear and Greed index has always measured market sentiments for cryptocurrency and altcoins. The index currently scores 69, which is 19 points up from January 10, when it was neutral at 50.

Bitcoin has already retraced its trading above $100,000 and is now holding at $94,212, down 3.92% over the last week. This is a testament that reversing may soon be significant and may hurt most investors.

Other analysts and crypto traders believe the drop in Bitcoin price won’t last

Although Woo’s advice should be considered, not all analysts agree. Some believe the drop will be a short-term bear moment. Anonymous crypto trader Rekt Capital, in his X post on January 10, feels otherwise. 

Rekt Capital said the 15% drop from Bitcoin’s all-time high on December 17 is similar to previous patterns Bitcoin has shown. He further clarified that the timing of the drop is in line with historical tendencies. It may, therefore, begin growing sooner than anticipated.

On the other hand, Jan3 CEO Samson Mow told his 327,000 X followers that all dips are fake if you know how to comprehend the Macro landscape. He further claimed that dips are a creation meant to reduce Bitcoin prices for rich players to purchase.