Bitcoin may be forming a 'bull trap,' a deceptive rally that lures investors before the broader downtrend resumes, according to on-chain analyst Willy Woo. He suggests this could last through April, with his outlook based on liquidity conditions.
Woo states Bitcoin is "solidly in the middle of its bear market." Following sharp declines, the cryptocurrency often consolidates and tests resistance levels. Bitcoin has fallen approximately 46.82% from its all-time highs of $126,000, trading at $67,012 at the time of publication.
Further downside is possible, as whales are reportedly selling while retail investors buy below $70,000, a pattern suggesting the correction is not over. Despite recent volatility, investor flows have shown consistent recovery since mid-February.
Other analysts concur that 2026 is expected to be a bear market year for Bitcoin, with new all-time highs unlikely. The Crypto Fear and Greed Index has recently returned to "extreme fear" levels.