Bitcoin may be headed to a “bear trap” below $95,000 despite staging its first monthly close above $100,000.
Bitcoin (BTC) fell below the $100,000 psychological mark on Feb. 2 for the first time since Jan. 27, Cointelegraph Markets Pro data shows
The decline comes amid inflation concerns after President Donald Trump imposed import tariffs on goods from China, Canada and Mexico.
However, the dip could be the start of a wider correction, potentially taking Bitcoin to $95,000, according to Ryan Lee, chief analyst at Bitget Research.
“On the downside, the $95,000 range remains a critical support area. The interplay between labor market trends, Fed policy expectations, and market sentiment will be the main catalysts to monitor in the coming weeks,” Lee told Cointelegraph.
However, Bitcoin could see more upside in February if next week’s labor market data points to a “sluggish economy,” added the analyst.
The US Bureau of Labor Statistics is set to publish its US labor market report on Feb. 7. Weakening labor market data may strengthen the case for a rate cut by the Federal Reserve, which creates a “more supportive environment for Bitcoin,” according to Lee.
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Bitcoin secures record monthly close above $102,000
However, Bitcoin recorded its first monthly close above $100,000 in crypto history in January.
Bitcoin closed the month above $102,412, which is over 6% higher than its previous record monthly close of 96,441, registered in November 2024.
Some analysts believe that Bitcoin’s current correction may only be a bear trap, including popular crypto analyst Sensei, who shared the below chart in a Feb. 2 X post.
A bear trap is a form of coordinated but controlled selling that creates a temporary dip in an asset’s price. It typically comprises a significant correction during a long-term uptrend.
Related: $36T US debt ceiling signals Bitcoin correction after Trump inauguration
Despite the potential for a short-term correction, Bitcoin’s prospects remain bullish for the rest of 2025, especially after spot Bitcoin exchange-traded funds (ETFs) surpassed a record $125 billion milestone just over a year after they first debuted for trading in the US on Jan. 11, 2024.
Analyst predictions for the rest of the 2025 market cycle range from $160,000 to above $180,000.
Eric Trump Explains How His Dad Could Propel BTC to $1M. Source: YouTube
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