Bitcoin appears to be experiencing a potential “bear trap” as it trades below the $95,000 mark.
This comes on the heels of the cryptocurrency’s historic achievement of closing above $100,000 for the first time.
Recent data from Cointelegraph Markets Pro reveals that Bitcoin dipped below this crucial psychological threshold on February 2, marking the first time it fell under this level since January 27.
Market Dynamics and Influences
This price drop aligns with growing concerns over inflation, sparked by the import tariffs on goods from neighboring nations announced by former President Donald Trump.
Ryan Lee, the chief analyst at Bitget Research, suggests that this decline could herald a wider market correction that drives Bitcoin closer to the $95,000 support level.
He emphasized the importance of monitoring shifts in the labor market, Federal Reserve policy expectations, and overall market sentiment over the coming weeks.
However, Bitcoin could find opportunities to bounce back this February, especially if labor market data released by the US Bureau of Labor Statistics on February 7 points to an economic slowdown.
Lee indicates that disappointing numbers could strengthen the case for a rate cut from the Federal Reserve, which would likely create a more supportive environment for the cryptocurrency.
Recent Milestones and Predictions
In a noteworthy development last month, Bitcoin marked a significant milestone by closing January above $102,412, a rise of over 6% from its previous peak of $96,441 reached in November 2024.
Some analysts, including well-known crypto commentator Sensei, argue that the current market correction might simply be a bear trap.
This term describes a scenario where managed selling leads to a short-term drop in an asset’s price, while the overall long-term trend remains bullish.
Despite the momentary setbacks, projections for Bitcoin in 2025 remain positive.
Interestingly, spot Bitcoin exchange-traded funds (ETFs) recently surpassed a remarkable $125 billion—an accomplishment that came just over a year after their introduction to the US market on January 11, 2024.
Analysts forecast that by the end of 2025, Bitcoin could see its market cycle push values anywhere from $160,000 to over $180,000.
Source: Cointelegraph
