Willy Woo Warns of Bitcoin 'Bull Trap' as Bear Cycle Reaches Intermediate Stage
Renowned on-chain analyst Willy Woo has cautioned that Bitcoin's present price levels may not represent the bottom, suggesting the cryptocurrency could experience additional declines before establishing a genuine cycle bottom.
According to prominent on-chain analyst Willy Woo, Bitcoin may witness a brief upward price movement that could mislead investors before the overarching bearish trend continues its course.
In a Saturday post on X, Woo stated "Bull trap forming," alluding to a deceptive price breakout that gives the false impression of a sustained bullish market reversal. He further noted that this pattern might persist "out to [the] end of April."
According to Woo, his perspective stems from analyzing liquidity dynamics rather than focusing on specific price points. "If capital comes back in force with the right type of long-term investors, then I'll happily change my views," Woo said.
Bitcoin is "solidly" in the middle of a bear market
When examining long-range liquidity trends, Woo characterized Bitcoin (BTC) as being "solidly in the middle of its bear market." "Typically, after fast downward flushes like we have had, BTC likes to go sideways and mount a rally where resistance is tested," Woo said.
The leading cryptocurrency has declined roughly 46.82% from its October peak of $126,000, with current trading activity hovering around $67,012 as of press time, based on data from CoinMarketCap.
According to Woo's analysis, the current price level does not represent Bitcoin's final bottom, and the digital asset could face additional downward pressure. Cryptocurrency sentiment analysis platform Santiment echoed a comparable assessment on Saturday, highlighting that large holders are aggressively offloading their positions while smaller retail participants are accumulating beneath the $70,000 threshold.
"When retail buys while whales sell, it typically signals that the correction is not yet over," Santiment said.
Bitcoin investor flows have been in "consistent recovery"
Despite Bitcoin's inability to maintain the "mid-70s" price territory following its surge to $74,000 on Wednesday, Woo observed that investor flows have demonstrated "consistent recovery" patterns beginning in mid-February.
Woo is far from the sole market observer who believes Bitcoin remains entrenched in bearish conditions. Cryptocurrency analyst Benjamin Cowen recently shared with Magazine that 2026 represents a "bear market year" for Bitcoin and is unlikely to witness fresh all-time price peaks.
Blockchain analytics firm CryptoQuant stated on Thursday that "Bitcoin is still in a bear market despite the recent rally."
This analysis emerges following the Crypto Fear and Greed Index, among the most extensively utilized measurements of cryptocurrency market sentiment, sliding back into "extreme fear" territory after experiencing a temporary rebound on Wednesday.