Bitcoin 'Bull Trap' Forming As Bear Market Middle Stage Approaches: Analyst
Analyst Willy Woo suggests a potential short-term Bitcoin rally, a 'bull trap,' before the bear market's middle phase continues, possibly until late April.Summary
On-chain analyst Willy Woo has warned that a 'bull trap' might be forming for Bitcoin, indicating a short-term rally that could mislead investors into thinking a sustained uptrend is beginning, potentially lasting until the end of April. Woo bases this outlook on liquidity conditions, noting that Bitcoin is currently 'solidly in the middle of its bear market' from a long-range liquidity perspective. He expects that after sharp downward movements, Bitcoin typically consolidates sideways and tests resistance before further downside. Despite a recent rally, Bitcoin remains significantly below its October all-time high of $126,000. Other analysts, like Benjamin Cowen, also view the current period as a bear market, with CryptoQuant confirming this sentiment. Furthermore, data from Santiment shows whales aggressively selling while retail investors buy below $70,000, suggesting the correction is not yet complete.
(Source：Cointelegraph)