Willy Woo: Strength In Bitcoin Through February, Liquidity Trends Signal Caution For 2026
Cryptocurrency analyst Willy Woo revealed a market evaluation stating that expectations are constructive for BTC from late January by February, whereas the outlook for 2026 stays unfavourable.
The analyst described this view as being derived from information evaluation and famous that it’s held with warning. Internal monitoring fashions of investor capital motion recognized a market low on twenty fourth December, after which circumstances have proven regular enchancment.
Historically, related move patterns are inclined to affect pricing with a delay of roughly two to a few weeks, and present worth conduct is taken into account in step with that sample, although short-term technical indicators counsel short-term overbought circumstances are limiting speedy upside.
Additional supportive alerts have been noticed in derivatives markets, the place liquidity tied to futures exercise has begun to return following a chronic contraction, a improvement corresponding to mid-2021 that preceded a secondary market peak throughout the earlier cycle.
From a technical perspective, the worth area between 98,000 and 100,000 is recognized as a essential resistance space, with subsequent efficiency dependent in the marketplace’s skill to beat and stabilize above that zone and on how worth responds close to earlier all-time-high ranges.
Despite near-term optimism, the longer-term outlook for 2026 stays cautious, as broader liquidity tendencies have been weakening relative to cost momentum since January 2025, putting the market in a section the place upward motion seems more and more unsupported by underlying capital inflows.
Stronger Spot Liquidity Could Shift BTC Outlook, While Bear Market Signals Remain Absent
According to the report, the outlook would shift if a considerable improve in spot market liquidity, representing longer-duration capital, have been to emerge within the coming months and reverse the prevailing weakening development.
It was additionally famous {that a} confirmed bear market has not but materialized, as such a section would sometimes be mirrored by accelerating capital outflows from BTC, a improvement that usually seems with a delay following a serious cycle peak.
Spot Bitcoin exchange-traded funds (ETFs) opened 2026 with redemptions, recording a complete outflow of $681 million over the primary full buying and selling week of the 12 months.
Data from SoSoValue point out that these Bitcoin ETFs registered web withdrawals of $681 million over the last week. In distinction, spot Ethereum ETFs skilled a web discount of $68.57 million from January fifth by January ninth.
In the identical interval, spot ETFs for Solana and XRP skilled web inflows, with Solana-linked funds drawing $41.08 million and XRP-linked funds attracting $38.07 million.
Market observers attribute the broader outflows primarily to macroeconomic uncertainty, noting that altering expectations for financial coverage and elevated world danger perceptions have dampened positioning. With rate of interest cuts within the first quarter showing much less possible and geopolitical tensions rising, broader monetary circumstances have shifted towards danger aversion, prompting merchants to await clearer constructive developments and lowering danger urge for food throughout markets, together with cryptocurrencies.
At the time of reporting, Bitcoin was buying and selling round $92,030, reflecting a acquire of greater than 1.52% over the prior 24 hours, with an intraday low of $90,239 and a high of $92,337, in keeping with CoinMarketCap information.
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