On-chain analyst Willy Woo (윌리 우) warned that Bitcoin (BTC) has entered the middle of a bear market and that a bull trap is forming.

Cointelegraph reported on March 8 that he said on X, formerly Twitter, that a short-term rebound could continue until late April but would be a false breakout signal rather than a shift to an uptrend. A bull trap refers to a period when investors buy on the mistaken belief that the market is turning higher, but the downtrend continues. Because it can draw in even investors unrelated to the market, subsequent declines tend to be larger.

Bitcoin hit a record high of $126,000 last October, then fell 46.82 percent and now trades at $67,012. It rebounded to $74,000 at one point last Wednesday, but failed to hold that level and slipped again. Over the past 30 days, it is up 3.74 percent, staying slightly positive.

Woo cited liquidity conditions rather than price levels as the basis for his current outlook. He said he would be willing to change his view if long-term investor capital flows in sufficiently, but for now he sees the chances of further declines as higher.

He said that after a sharp drop, BTC tends to move sideways and then stage a rally to test resistance lines, and stressed that the long-term liquidity trend shows the market is in the middle of a bear phase. He added that investor inflows have steadily recovered since mid-February.

Crypto market sentiment platform Santiment also issued a similar warning the same day. It said retail investors are buying below $70,000 while whales are selling aggressively, and that this pattern historically suggests the correction is not over yet. It said a structure in which retail investors absorb heavy whale selling often leads to additional declines.

On-chain analytics firm CryptoQuant also assessed on March 6 that despite the recent rebound, Bitcoin is still in a bear market. Cryptocurrency analyst Benjamin Cowen (벤저민 코웬) said in an interview with Cointelegraph Magazine that 2026 will be a year in which Bitcoin's bear-market trend continues, and he saw a low likelihood of setting a new high.

Investor sentiment indicators also support that view. The Fear & Greed Index, a leading sentiment gauge for the crypto market, returned to the Extreme Fear zone after a brief rebound on Wednesday. Spot Bitcoin exchange-traded funds also posted net outflows of $228 million, confirming a pullback by institutional investors.

If Woo's analysis is correct, the rebound phase could continue until late April, but the market's view beyond that remains cautious.