Bitcoin Bull Trap Looms as Analyst Warns of Short-Term Rally
Willy Woo, an on-chain analyst, has warned that Bitcoin may be setting up for a short-term rally that could mislead investors. He described this pattern as a 'bull trap,' which he expects to last through the end of April.
The setup is driven by liquidity conditions, not price levels alone, according to Woo. He noted that investor flows have been in a 'consistent recovery' since mid-February but added that this improvement has not been strong enough to confirm a bottom.
Bitcoin reached $74,000 on Wednesday but failed to hold above the 'mid-70s' range, falling approximately 46.82% from its all-time high of around $126,000. Woo does not view the current recovery as a genuine trend reversal and expects the asset's price to remain in the middle of its bear market.
Crypto sentiment platform Santiment shared a similar view, pointing out that whales are aggressively selling while retail investors buy below $70,000. 'When retail buys while whales sell, it typically signals that the correction is not yet over,' Santiment said.