Bitcoin ‘bull trap’ forming as bear market enters middle phase: Willy Woo

Bitcoin could acquisition a short-term rally that catches investors disconnected defender earlier the broader downtrend resumes, according to on-chain expert Willy Woo.

“Bull trap forming,” Woo said successful an X station connected Saturday, referring to a fake breakout suggesting that the marketplace is entering a sustained uptrend. He added that it whitethorn past “out to [the] extremity of April.”

Woo said his outlook is based connected liquidity conditions alternatively than terms levels. “If superior comes backmost successful unit with the close benignant of semipermanent investors, past I'll happily alteration my views,” Woo said.

Bitcoin is “solidly” successful the mediate of a carnivore market

From a long-range liquidity perspective, Woo said Bitcoin (BTC) is “solidly successful the mediate of its carnivore market.” “Typically, aft accelerated downward flushes similar we person had, BTC likes to spell sideways and equine a rally wherever absorption is tested,” Woo said. 

Bitcoin has fallen astir 46.82% since reaching its October all-time highs of $126,000, trading astatine $67,012 astatine the clip of publication, according to CoinMarketCap.

Bitcoin is up 3.74% implicit the past 30 days. Source: CoinMarketCap

Woo said that this level isn’t the bottommost for Bitcoin and the plus whitethorn spot further downside. Crypto sentiment level Santiment shared a akin presumption connected Saturday, pointing to whales aggressively selling portion retail investors bargain below $70,000.

“When retail buys portion whales sell, it typically signals that the correction is not yet over,” Santiment said.

Bitcoin capitalist flows person been successful “consistent recovery”

Woo said that contempt Bitcoin failing to clasp the “mid-70s” scope aft it soared to $74,000 connected Wednesday, capitalist flows person been successful “consistent recovery” since the mediate of February.

Related: Bitcoin alleviation rally hits partition arsenic spot ETFs log $228M successful outflows

Woo isn’t the lone expert who thinks Bitcoin is successful a carnivore market. Crypto expert Benjamin Cowen precocious told Magazine that 2026 is simply a “bear marketplace year” for Bitcoin and improbable to bring caller all-time highs.

On-chain analytics institution CryptoQuant said on Thursday that “Bitcoin is inactive successful a carnivore marketplace contempt the caller rally.”

It comes aft the Crypto Fear and Greed Index, 1 of the astir wide utilized gauges of crypto capitalist sentiment, fell backmost to “extreme fear” levels aft concisely recovering connected Wednesday.

Magazine: The statement implicit Bitcoin’s four-year rhythm is over: Benjamin Cowen