Trader Warns Bitcoin 'Approaching Peak' in Cycle, Caution Against Firewood

A famous Bitcoin analyst has just warned cryptocurrency investors to be cautious in the coming months as expected profit-taking waves continue to increase in the short term. "Risk is peaking for the first time in this cycle, with large volumes of profits from coins being sold. There are still many profit-taking runs before the market can rebalance," analyst Willy Woo said in a Jan. 10 post on Platform X with 1.1 million followers. Willy Woo: Handle with Care Willy Woo emphasizes that despite the extremely optimistic market psychology of Bitcoin, investors should adopt a more cautious approach at this stage. He cites his own local risk model, showing the highest level of risk since January 2023.

According to the Fear and Greed Index, the current market sentiment still leans towards "Greed," with a score of 69 - up 19 points from the "Neutral" level of 50 on 10/1. Bitcoin has dropped below the important psychological level of $100,000 on January 8th and has since been unable to surpass it. The world's largest cryptocurrency is currently trading at $94,120, down 3.92% over the past week, according to data from CoinMarketCap. Forecast on the Possibility of Bitcoin Reversal In addition, the non-farm payroll (NFP) data for December in the United States exceeded expectations, indicating a strong labor market and lower-than-expected unemployment rate. This has put pressure on risk assets, including crypto. However, not all analysts believe that the Bitcoin price drop will be prolonged. Renowned anonymous trader Rekt Capital believes that a 15% correction from the all-time high of $108,000 on 12/17 is consistent with the previous cycle trend. "This adjustment timing perfectly matches historical patterns," Rekt wrote in a post on X on 10/1. "Therefore, the possibility of a reversal is very high," he added. Meanwhile, Jan3's CEO, Samson Mow, remarked to his 327,000 followers on X: "Understanding the current macroeconomic context will help you realize that all current price declines are not substantial."

"These price declines are only the result of Bitcoin price manipulation strategies to create conditions for large investors to accumulate more," Mow added. DYOR! #Write2Earn #Write&Earn $BTC {spot}(BTCUSDT)