Bitcoin May Face Sideways Trading as Analyst Warns of Weak Buying Momentum Amid Profit-Taking
Renowned on-chain analyst Willy Woo has delivered a nuanced outlook on Bitcoin, highlighting both long-term bullish signals and short-term uncertainty. Earlier analysis indicated robust buying liquidity and a downward-trending risk signal, in favor of a continued uptrend for Bitcoin. However, Woo has since noted that the recent rally’s momentum is fading and significant new accumulation from investors has not materialized. The market has seen an increase in long positions from latecomers and profit-taking activity, as supported by SOPR (Spent Output Profit Ratio) data showing high potential for profit realization. These factors raise the risk of short-term price pressure or consolidation. Woo emphasizes that unless new capital enters the market, Bitcoin’s price could remain range-bound despite strong conviction among long-term holders. For crypto traders, the key takeaway is to monitor both ongoing market sentiment and on-chain metrics, focusing on fresh buying pressure as a critical signal for any renewed upward movement.
Neutral
Bitcoin currently shows a delicate balance between bullish long-term fundamentals—such as strong conviction among long-term holders—and short-term obstacles, including waning buying momentum, profit-taking, and a lack of significant new investor inflows. On-chain data reveal that while risk metrics have improved, upward price movement now depends on fresh capital entering the market. Without renewed buying activity, Bitcoin may consolidate or trade sideways, as suggested by increased SOPR activity and profit-taking. Therefore, while long-term prospects remain positive, immediate impact on price action is neutral, with traders needing to watch for new inflows to signal potential breakout.