Bitcoin (BTC) Price Reversal Warning From Analyst Willy Woo: What Do the Indicators Suggest?

Bitcoin price critical warning

Bitcoin analyst Willy Woo has issued a fair warning to Bitcoin traders. Despite the bullish trend in the market, traders are being advised to trade cautiously in the coming months. This is due to the high probability of a near-term reversal.

Willy Woo wrote in his recent Substack 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’s statement comes as the Bitcoin market is showing signs of overheating. This is according to the犇犇Bitcoin native risk model, which suggests very high levels of risk not seen since 2023. On the other hand, other indicators, such as the Fear and Greed index, indicate that the overall crypto market is still bullish.

What do the indicators say?

The Fear and Greed index has always measured market sentiment for cryptocurrencies and altcoins. The index is currently at 69 points, which is 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 an indication 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 had something else to say in a recent Substack post on January 10. Rekt Capital stated 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 Substack 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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