Bitcoin 'Bull Trap' Forming as Bear Market Middle Stage Approaches

On-chain analyst Willy Woo warned that a short-term rally could be a "bull trap," writing on X that the faux breakout may last "out to [the] end of April." He said his outlook is based on liquidity conditions rather than price levels and that he would change his views if capital returns with the right type of long-term investors.

From a long-range liquidity perspective, Woo said Bitcoin (BTC) is "solidly in the middle of its bear market." He added that after fast downward flushes, BTC typically goes sideways and mounts a rally where resistance is tested. Bitcoin has fallen approximately 46.82% since reaching its October all-time highs of $126,000, trading at $67,012 at the time of publication, and is up 3.74% over the past 30 days.

Woo said this level isn’t the bottom and the asset may see further downside.

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