Analyst Willy Woo Bullish on Bitcoin as Risk Signal Trends Downwards
Renowned analyst Willy Woo is expressing optimism about Bitcoin (BTC) just over a week since the cryptocurrency reached a new all-time high.
Woo shared with his 1.2 million followers on X, a social media platform, that Bitcoin’s risk signal is on the decline, indicating a decrease in market risk. According to him, there is a rise in liquidity from buyers, which could potentially drive up the price of Bitcoin.
“We are setting up for another solid run on the long time frame,” Woo stated confidently.
Despite the recent bullish momentum of Bitcoin, Woo mentioned that the strength of the rally from $75,000 in early April to $112,000 in late May appears to be waning.
Looking at the short term, the analyst emphasized the critical nature of the current week, stating, “This week is absolutely critical, if we do not get follow through, then we will be up for another consolidation period.”
Woo also expressed concerns about latecomer speculators entering long positions while there is a significant amount of potential profit-taking ready to occur (SOPR).
“This week’s spot buying will strongly influence the next 1-2 months of price action. We are in a pivot zone,” Woo added.
The SOPR, which stands for Spent Output Profit Ratio, is a metric used to gauge market sentiment by indicating whether the moving Bitcoin is being sold at a profit or loss.
As of the time of writing, Bitcoin is trading at $107,531.
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