As a cryptocurrency investor, I’ve been advised by a Bitcoin analyst to approach the market cautiously over the next few months, as there seems to be an increase in profit-taking opportunities on the horizon.
As an analyst, I’m sharing my perspective: For the first time within this cycle, risk seems to be reaching its zenith. There appears to be substantial profit potential in coins that have been selling, and there is more profit-taking on the horizon before we can confidently say that we’ve reached a reset point for Bitcoin (BTC).
Willy Woo advises a ‘cautious approach’ for the coming months
He mentioned that while Bitcoin optimism appears extremely high, it would be prudent to adopt a more reserved strategy in the upcoming months. He emphasized his Bitcoin regional risk model, which suggests risk levels last observed in January 2023.
As per the Fear and Greed Index, the general market mood towards Bitcoin and other cryptos remains “greedy” at present, indicating high optimism among investors.
Currently, the Index is showing a “Greed” rating of 69, which is an increase of 19 points compared to its “Neutral rating” of 50 that was recorded on January 10th.
Since January 8th, Bitcoin hasn’t managed to surpass the psychologically significant $100,000 mark and has stayed below this level ever since.
As an analyst, I am reporting that at the moment, I’m observing Bitcoin being traded at approximately $94,120. Over the last week, its value has seen a decrease of 3.92%. This information is derived from the data provided by CoinMarketCap.
Other traders say ‘high probability of reversal’
According to a recent report from CryptoMoon, the U.S. Federal Reserve’s December Nonfarm Payrolls (NFP) surpassed predictions, indicating a robust labor market. This strong employment data put pressure on risky assets in various sectors and was further supported by lower-than-expected unemployment numbers.
However, not all analysts are convinced that the drop in Bitcoin’s price will last long.
Anonymously trading cryptocurrencies, Rekt Capital expressed in a recent post on Jan 10th that Bitcoin’s 15% dip from its fleeting record peak of $108,000 reached on Dec 17th mirrors trends observed in past market cycles.
“The timing of this retrace is in line with historical tendencies,” Rekt said.
“As a result, it has a high probability of reversal,” Rekt added.
In a recent post on January 10th to his 327,000 followers on X, Samson Mow, CEO of Jan3, expressed, “Given the current macro picture, it’s clear that all market drops are false at this point.
“They are just manufactured to lower the Bitcoin price for the big players,” Mow said.
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2025-01-11 07:59