Another Wave of Bitcoin (BTC) Selloffs Incoming if This Happens, Warns Analyst Willy Woo

Veteran Analyst Warns of Potential Bitcoin Market Correction

Veteran on-chain analyst Willy Woo is cautioning investors that Bitcoin (BTC) may face a market correction if a crucial event does not unfold in the near future. In a recent update on X, Woo expressed concerns about the potential for a bearish turn if Bitcoin fails to achieve new all-time highs.

According to Woo, “If we don’t get further highs soon, BTC will be setting up for bearish divergences on longer range charts at a time when capital inflows have been weaker than normal with speculation running too hot. If that happens we will need to wear out another wave of profit taking.”

Despite these warnings, Woo also highlighted some positive indicators for Bitcoin. The Bitcoin Risk Signal, which assesses the risk of a major price decline, is currently signaling bullish momentum. This could potentially pave the way for Bitcoin to reach new all-time highs in the coming week.

Another concerning trend highlighted by Woo is Bitcoin’s spent output profit ratio (SOPR), which suggests that investors are currently sitting on significant profits. This could lead to a sell-off if there are signs of a market downturn.

Furthermore, Woo pointed out that investor buying of Bitcoin has slowed down for the first time since the recent breakout to new all-time highs. This could signal a potential bearish reversal in the near future.

As of the time of writing, Bitcoin is trading at $107,948, down 1.1% in the last 24 hours.

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