- Bitcoin price retreated on Tuesday, erasing some of the recent gains.
- Willy Woo warns that the ongoing Bitcoin rally is a bull trap.
- Technical analysis suggests that the coin has stalled at a crucial level.
Bitcoin price pulled back slightly on Tuesday, erasing some of the gains made a day earlier. BTC dropped to $73,500 from this week’s high of $75,500, and Willy Woo, a popular crypto analyst, believes that the coin has not bottomed yet.
Willy Woo Warns That Bitcoin Price Rally May Be Brief
Bitcoin price pulled back as crude oil rebounded, with the war in Iran continuing. Brent, the global benchmark, rose to $103, while the US benchmark jumped to $96.
Iran announced that it killed several senior leaders, including Ali Larijani, the popular head of the country’s security. Iran, on the other hand, launched more missiles towards Israel and launched drones towards Kuwait, the United Arab Emirates (UAE), and Iraq.
Bitcoin’s pullback also coincided with the weakness in the US stock market futures, with those tied to the Dow Jones and Nasdaq 100 falling by over 50 points.
READ MORE: Why is Crypto Going Up Today? Bitcoin, Pepe Coin, Polkadot, XRP Rally Explained
Meanwhile, Willy Woo, a popular crypto analyst, warned that the recent Bitcoin price rally could be a dead-cat bounce.
In an X post, he said that the ongoing rally was being driven by the futures market, which is mostly characterized by short-term buyers. He added that the recent rally was a bull trap and that Bitcoin was still around a third of the way in a bear market.
Willy Woo’s Bitcoin price prediction happened on the same day that analysts at Citigroup slashed its Bitcoin target to $112,000, citing the ongoing CLARITY Act passing delay.
On the positive side, spot Bitcoin ETFs have continued adding assets this month. They added over $201 million in inflows on Monday, the sixth consecutive day, bringing the cumulative monthly increase to over $1.54 billion. These funds had shed over $6.3 billion in the previous four consecutive months.
Bitcoin Price Prediction: Technical Analysis
The daily timeframe chart shows that Bitcoin price has risen in the past few days and is officially in the bull market after rising by over 20% from its lowest level this year.
READ MORE: Altcoin Season Nears Key Milestone as Crypto Fear and Greed Index Jumps
The coin has moved to the 23.6% Fibonacci Retracement level, which coincides with the Major S&R Pivot Point of the Murrey Math Lines tool.
Bitcoin has also moved above the 50-day Exponential Moving Average (EMA) and the Supertrend indicator.
Therefore, Bitcoin may remain under pressure in the near term. If this happens, it may drop to the next key support level at $70,000. More gains will be confirmed if it jumps above the 100-day moving average and the 38.2% retracement level at $85,000.
