Renowned analyst and co-founder of the Bitcoin Vector project and Crest company, Willy Woo, shared his insights on the future of Bitcoin. He maintains moderately optimistic expectations for the short-term dynamics of the cryptocurrency at the end of January and in February, but warns of potential bear market risks in 2026.
This is reported by Business • Media
Short-Term Prospects for Bitcoin and Liquidity Dynamics
According to Woo, internal investor flow models indicate that a local minimum was recorded on December 24, 2025. After this date, indicators began to gradually improve. The analyst notes that typically the market needs about two to three weeks for these changes to impact the price of Bitcoin.
Additionally, Woo pointed out the revival of activity in the futures markets. Paper liquidity, which had remained low for several months, has started to gradually increase. The expert compares this situation to mid-2021, when a similar dynamic preceded the formation of the second price peak of that market cycle.
Long-Term Risks and Key Resistance Levels
From a technical perspective, Willy Woo identifies the range of $98,000–$100,000 as the main resistance zone for Bitcoin. If this level is surpassed, market participants will focus on the price’s reaction to the historical maximum.
“His overall outlook for 2026 remains bearish. He noted that since January of last year, liquidity flows have gradually weakened relative to price momentum.”
The analyst emphasizes that such a situation could lead to the formation of an “overheated zone” without sufficient capital support. This creates conditions for a potential bear market in 2026.
According to Woo, a significant increase in spot liquidity, meaning long-term investments, in the coming months could change this scenario. This could reverse the negative trend of decreasing liquidity.
At the same time, the expert stresses that there are currently no confirmed signs of a bear market. A sustained trend of negative capital outflows would be a significant signal — a traditional lagging indicator of reaching a market cycle peak.
It is worth noting that recently the activity of long-term Bitcoin holders (LTH) has been declining, and the market is gradually absorbing coins that have been held in wallets for a long time, as analysts from Glassnode have reported.