Bitcoin Analysts Warn of $95K ‘Bear Trap’ Despite $102K Monthly Record

A bear trap is a form of coordinated but controlled selling that creates a temporary drop in the price of an asset, comprising a significant correction during a long-term uptrend.

Bitcoin may be heading into a bear trap below $95,000 despite posting its first monthly close above $100,000.

Bitcoin (BTCR$592,796) fell below the psychological $100,000 mark on Feb. 2 for the first time since Jan. 27, data from Cointelegraph Markets Pro shows.

The decline comes amid inflation concerns after President Donald Trump imposed tariffs on imports of goods from China, Canada and Mexico.

However, the drop could be the start of a broader 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 key catalysts to monitor in the coming weeks,” Lee told Cointelegraph.

However, Bitcoin could rally further in February if next week's labor market data points to a "sluggish economy," the analyst added.

The U.S. Bureau of Labor Statistics is set to release its U.S. labor market report on Feb. 7. Weakening labor market data could strengthen the case for a rate cut by the Federal Reserve, which creates a “more favorable environment for Bitcoin,” according to Sobe.

However, Bitcoin recorded its first monthly close above $100,000 in cryptocurrency history in January.

Bitcoin closed the month above $102,412, which is more than 6% above its previous monthly high of $96,441, set in November 2024.

Some analysts believe that Bitcoin's current correction could just be a bear trap, including popular cryptocurrency analyst Sensei, who shared the chart below in a Feb. 2 post.

A bear trap is a coordinated but controlled form of selling that creates a temporary drop in the price of an asset. It typically involves a significant correction during a long-term uptrend.

Related: $36 Trillion US Debt Ceiling Signals Bitcoin Correction After Trump Inauguration

Despite the potential for a short-term correction, Bitcoin’s outlook remains 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 their debut for trading in the U.S. on Jan. 11, 2024.

Analyst forecasts for the remainder of the 2025 market cycle range from $160,000 to over $180,000.