Cryptos in red, analyst forecasts growing risk

WEB DESK: Bitcoin opened Saturday’s trading in the red, with the largest cryptocurrency priced at $94,454.77 at around 00:28 UTC, a decline of $301.74 from its previous close of $94,756.51 on Friday.

Despite an attempt to recover from this dip, Bitcoin only managed to reach $94,687.49 by 01:16 UTC, still down by $69.02 from its last close. The decline worsened after 04:24 UTC, as Bitcoin dropped from $94,200.90 to $93,966.83 by 04:47 UTC, reflecting a loss of $789.68.

The highest point Bitcoin reached during this period was when trading began, standing at $94,740.57 at 00:00 UTC, still $15.94 lower than its previous close. The cryptocurrency continued to face a downtrend after 08:31 UTC, falling from $94,369 to $94,087.22.

Other cryptocurrencies also saw declines. Ether (ETH) dropped by 1.19 per cent to $3,299.86, Litecoin (LTC) decreased by 0.12 per cent to $103.95, and Dogecoin (DOGE) fell by 0.81 per cent to $0.3312.

In other news, a Bitcoin analyst has cautioned crypto market participants to exercise caution in the coming months, as more profit-taking is expected in the near term.

“Risk is peaking for the first time in this cycle, and there’s a significant amount of profit in coins that have already been sold, with more profit-taking expected before we see a full market reset,” Bitcoin analyst Willy Woo said in a recent post.

Woo further explained that although market sentiment for Bitcoin appears “highly bullish,” investors should adopt a more cautious stance moving forward. He cited his Bitcoin local risk model, which points to risk levels not seen since January 2023.

The overall market sentiment remains in “Greed” territory, as indicated by the Fear and Greed Index, which measures market sentiment for Bitcoin and other cryptocurrencies. The index currently shows a “Greed” score of 69, up 19 points from its “Neutral” score of 50 on 10th January.

Since retracing from the $100,000 psychological level on 8th January, Bitcoin has struggled to reclaim this mark. As of now, Bitcoin is trading at $94,120, down 3.92 per cent over the past seven days, according to data from CoinMarketCap.

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