While a relief rally is likely underway, traders should keep their eyes on lower prices, Woo says.
Bull trap forming.
FAQ What does Willy Woo mean by a “bull trap?A bull trap is a rally that draws in buyers but ultimately fails, with the price reversing back into the prior downtrend. Is Willy Woo saying bitcoin’s bottom is definitely not in? He’s warning that conditions don’t yet look like a confirmed macro bottom, pointing to volatility behavior and capitulation patterns. What signals does Woo associate with a true bottom? He has pointed to repeated volatility spikes and evidence of retail capitulation, followed by volatility peaking and rolling over. Why does volatility matter in his framework? Woo argues that rising volatility often aligns with trend continuation, while major bottoms tend to form after volatility crests and starts to fade.
