Willy Woo Warns: Bitcoin May Face Major False Breakout, Beware of Bull Traps Before April

Last week, Bitcoin price rebounded to a high of $74,000 before falling back to around $67,000, but recently it has once again surpassed the $70,000 mark, sparking market expectations for a new round of rallies. However, well-known on-chain analyst Willy Woo has issued a warning, saying that the current rebound may not be a trend reversal, but a carefully designed "bull trap."

Woo pointed out that from the perspective of liquidity structure, Bitcoin is still in the mid-stage of a bear market, and the recovery of market sentiment is more driven by short-term funds rather than fundamental support. He analyzed that the recent rapid price increase pattern is highly similar to the typical bull trap pattern in history, intended to attract those who chase highs to enter the market and provide opportunities for large holders to ship their holdings.

He specifically mentioned that this technical rebound may continue until April, during which investors need to remain highly vigilant and avoid being misled by the superficial gains. In the absence of clear support from key indicators such as capital inflows and growth in on-chain active addresses, the current strong performance should be regarded as a disturbing signal in market volatility, rather than a sign of trend establishment.