Key Takeaways:
- Bitcoin’s risk signal trending downward — market risk declining
- Increased liquidity from buyers supporting potential upward movement
- This week is critical for determining next 1-2 months of price action
- Concerns about late-comer speculators and profit-taking pressure
📈 Bullish Long-Term Outlook
Crypto analyst Willy Woo is leaning bullish on Bitcoin (BTC) just over a week since the crypto king recorded a new all-time high. The analyst told his 1.2 million followers on X that Bitcoin’s risk signal is trending downwards, indicating falling market risk.
According to the widely-followed analyst, there’s an increase in liquidity from buyers, which could push up the price of the leading cryptocurrency.
“We are setting up for another solid run on the long time frame” — Willy Woo
⚠️ Weakening Bullish Momentum
However, Woo notes that the strength of Bitcoin’s recent bullish run from $75,000 (around April 6th) to $112,000 (May 22nd) is beginning to weaken.
Over the short term, the analyst emphasizes:
“This week is absolutely critical, if we do not get follow through, then we will be up for another consolidation period”
🎯 Key Concerns
Woo expresses concern about current market dynamics:
“In the short term, my main concern are the late-comer speculators taking long positions while an immense amount of potential profit-taking is ready to dump (SOPR).
This week’s spot buying will strongly influence the next 1-2 months of price action. We are in a pivot zone”
📊 Understanding SOPR
SOPR (Spent Output Profit Ratio) is an on-chain metric used to determine market sentiment by revealing whether Bitcoin being moved is sold at a loss or profit.
Key Readings:
- SOPR > 1: Bitcoin sold at profit
- SOPR < 1: Bitcoin sold at loss
- High SOPR: Potential for profit-taking and selling pressure
🔄 Critical Juncture
The analyst emphasizes that the market is in a “pivot zone” where this week’s spot buying activity will determine price direction for the coming months, making current market behavior crucial for Bitcoin’s near-term trajectory.