Crypto analyst Willy Woo is predicting a possible Bitcoin (BTC) price correction unless something significant happens soon.
Woo’s Warning: New Highs or Bearish Dip?
Woo, a well-known figure in the crypto space, shared his concerns with his over 1.2 million followers on X (formerly Twitter). He stated that if Bitcoin doesn’t hit new all-time highs soon, it could trigger bearish signals on longer-term charts. This is especially concerning because recent capital inflows have been weaker than usual, and speculation is running high. He believes this combination could lead to another round of profit-taking, resulting in a price drop.
A Bullish Signal Amidst Uncertainty
Despite this bearish outlook, Woo notes that a key Bitcoin risk indicator is currently bullish. This suggests the possibility of Bitcoin reaching new all-time highs this week. He even suggests that if buying pressure continues, the price could surge to $114,000, potentially causing short-sellers to lose significant funds. However, he emphasizes that the current market conditions also present an opportunity for a bearish reversal.
Profit-Taking Potential and Slowing Buying
Woo points out a worrying trend: Bitcoin’s Spent Output Profit Ratio (SOPR) shows investors are holding onto substantial profits. This suggests they might be tempted to sell if the price starts to fall. He warns that this situation, coupled with high speculation, resembles a “be fearful when others are greedy” scenario. The coming week, especially after the US markets reopen from a long weekend, will be crucial in determining the market’s direction.
Furthermore, Woo highlights a significant slowdown in Bitcoin buying – the first since the recent price surge. This lack of buying pressure adds to his concerns about a potential bearish reversal.
Current Market Situation
At the time of writing, Bitcoin is trading at around $107,948, down slightly over the past 24 hours. The coming days will be critical in determining whether Woo’s bearish prediction comes true or if Bitcoin can break through to new highs.
