A Bitcoin trader and analyst, Willy Woo, has issued a warning to investors, highlighting that risk within the current crypto cycle is reaching unprecedented levels. Woo suggests a cautious approach should be adopted in the coming months as there remains significant profit yet to be taken before the market can stabilize.
Despite the prevailing “uber bullish” sentiment around Bitcoin, Woo noted that his risk models are flashing warnings at levels not seen since early 2023. Presently, the Fear and Greed Index, which gauges the sentiment around Bitcoin and other cryptocurrencies, registers at a “Greed” level of 69, a notable increase from a “Neutral” 50 recorded earlier in the month.
Bitcoin’s price, having retracted from its psychological threshold of $100,000 earlier, now trades at approximately $94,120, marking a decline of 3.92% over the past week.
However, not all market participants share Woo’s cautious outlook. Other traders and analysts foresee a potential market reversal. Pseudonymous trader Rekt Capital conveyed confidence in a possible reversal, linking the current 15% drop to typical past cycles. Samson Mow, CEO of Jan3, supports this more optimistic outlook, suggesting recent dips may actually be artificially managed to allow larger players market entry at reduced prices.
