A widely followed on-chain analyst thinks that Bitcoin (BTC) is just taking a breather before rallying to fresh all-time highs.
Analyst Willy Woo tells his 1 million followers on the social media platform X that the Bitcoin Risk Signal, which compares BTC’s network flows to price action, suggests that the crypto king is not yet done rallying.
[adinserter block="1"]According to Woo, Bitcoin is currently consolidating close to record prices in preparation for the next burst to the upside.
“This is a Bitcoin long-timeframe risk signal I’ve been working on.
Scale in when risk is low, scale out when risk is high.
It’s saying, ‘Enjoy the dip while this consolidation lasts.’
This is not the top, it’s simply ATH (all-time high) consolidation.”
Zooming out, Woo says Bitcoin often witnesses parabolic rallies during bull markets because market participants are fueled by the fear of missing out (FOMO), along with the tendency of investors to hold on to their BTC stacks.
“The native language of markets is the chart, and it’s clear what the chart is saying.
See it?
TradFi (traditional finance) – ‘fear is greater than greed.’
Bitcoin – ‘FOMO is greater than fear.’
In TradFi, bear markets are steep, people freak out.
In Bitcoin, bull markets are steep, people FOMO.
In my opinion, Bitcoin FOMO in bull markets drives the marketing, then education takes over and the sell-off is very much muted. Hodling (holding on for dear life) becomes a behavior.”
At time of writing, Bitcoin is trading for $65,909, down over 1% in the last 24 hours.
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
