Bitcoin trader warns risk 'is peaking' in crypto cycle, calls for caution

Key Points

  • Bitcoin analyst Willy Woo warns of peaking risk in the crypto cycle, advising caution for the coming months.
  • Despite a bullish sentiment, Woo's local risk model indicates high risk levels not seen since January 2023.
  • Other traders like Rekt Capital and Samson Mow see a high probability of Bitcoin price reversal, suggesting current dips are temporary.

Summary

Bitcoin analyst Willy Woo has issued a cautionary note to crypto market participants, highlighting that the risk in the current cycle is peaking, with significant profit-taking expected in the near future. Despite an overall bullish sentiment in the market, Woo's Bitcoin local risk model shows risk levels not seen since January 2023, suggesting a need for a cautious approach. This comes at a time when the Fear and Greed Index indicates a "Greed" score of 69, reflecting a market still hungry for gains. However, not all share Woo's caution; other traders like Rekt Capital and Samson Mow argue that the recent price drop aligns with historical patterns and predict a high probability of reversal. They view current dips as manufactured opportunities for big players to buy in at lower prices, suggesting that the market's downturn might be short-lived.

cointelegraph
January 12, 2025
Crypto
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