Bitcoin may be at risk of a “bear trap” below $95,000, even after achieving its first-ever monthly close above $100,000.
Bitcoin (BTC) fell below the psychological threshold of $100,000 on Feb. 2, marking its first dip below this level since Jan. 27.
The decline comes amid growing inflation concerns following new import tariffs imposed by former U.S. President Donald Trump on goods from China, Canada, and Mexico. Analysts suggest that Bitcoin’s downturn could signal a broader correction, potentially pushing the asset toward the $95,000 range.
Ryan Lee, chief analyst at Bitget Research, identified $95,000 as a crucial support level, emphasizing that labor market trends, Federal Reserve policy expectations, and overall market sentiment will play a significant role in shaping Bitcoin’s trajectory in the coming weeks.
“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, the outlook for February remains mixed. Lee noted that Bitcoin could regain momentum if upcoming U.S. labor market data indicates an economic slowdown. The U.S. Bureau of Labor Statistics is set to release its labor market report on Feb. 7. Weaker employment figures could increase the likelihood of a Federal Reserve rate cut, which may create a more favorable environment for Bitcoin.
Despite recent volatility, Bitcoin secured a record-breaking monthly close above $102,000 in January, surpassing its previous record of $96,441 from November 2024. This milestone underscores the cryptocurrency’s resilience and long-term bullish trend.
Some market observers believe the recent downturn is a “bear trap,” a temporary price dip caused by controlled selling within an overall uptrend. Popular crypto analyst Sensei suggested in a Feb. 2 post on X (formerly Twitter) that Bitcoin’s current correction fits this pattern.
While short-term price fluctuations persist, Bitcoin’s long-term prospects remain optimistic. Spot Bitcoin exchange-traded funds (ETFs) have exceeded a $125 billion milestone just over a year after their debut in the U.S. on Jan. 11, 2024. Analysts predict that Bitcoin could reach between $160,000 and $180,000 later in 2025, reinforcing confidence in its sustained growth trajectory.
