Bitcoin (BTC) experienced a sharp recovery last week, reaching as high as $74,000. However, although the BTC price subsequently fell back to around $67,000, it has since surpassed the $70,000 mark once more.
Bitcoin’s jump above $70,000 has caused the market to focus on a potential bullish rebound.
However, an experienced on-chain analyst warned investors to be cautious.
On-chain analyst Willy Woo has indicated that there may be a bull trap in Bitcoin.
Woo explained that the recent Bitcoin surge could be a bull trap designed to attract investors. The analyst argued that the recent rise resembles a potential “bull trap” rather than a lasting reversal.
Woo said, “A bull trap may be forming in Bitcoin, and this trend could continue until April.”
Woo stated that the current market structure, particularly in terms of liquidity, is still showing a downward trend, saying, “From a liquidity perspective, Bitcoin is still in the middle of a bear market.”
*This is not investment advice.
