PiCK
Willy Woo: “Bitcoin’s rebound could be a bull trap… we’re not at the bottom yet”
Summary
- Willy Woo said the recent Bitcoin rebound is driven by short-term liquidity led by the futures market, warning of the risk of a bull trap.
- He said there is room for prices to move into the mid-$80,000s, but emphasized that futures-driven liquidity could amplify volatility and spur sharp price swings that trigger liquidations, leaving the market vulnerable to a pullback after a short-term rise.
- He added that a bottoming formation has not yet formed and that this is not a full-fledged shift into an uptrend, noting that the current bear market looks to be about one-third complete based on liquidity flows.
Forecast Trend Report by Period
On-chain analyst Willy Woo warned that the recent rebound in Bitcoin (BTC) appears to be driven by short-term liquidity led by the futures market, raising the risk of a “bull trap” (a rise followed by a decline).
On the 17th, Woo wrote on his X (formerly Twitter) that “core fundamentals are improving in the short term, leaving room for prices to move into the mid-$80,000s,” while adding that “this rally is being driven mainly by futures market participants.”
He noted that volatility could increase given the nature of futures-driven liquidity. In particular, he stressed the possibility of a pullback after a short-term rise, saying that “sharp price swings that trigger liquidations could emerge.”
He also assessed the current market structure, saying that a “bottoming formation has not yet been established,” and that a full-fledged shift into an uptrend has not occurred.
Woo maintained a cautious view of the market cycle as well. He said that “based on current liquidity flows, this bear market appears to be about one-third of the way through.”
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
