The cryptocurrency market never sleeps, and Bitcoin (BTC) could be about to surprise again! Despite a record monthly close above $102,000, analysts are warning that a correction to $95,000 could be on the way. But is this drop just a bear trap?
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Bitcoin Drops Below $100,000, But Long-Term Outlook Remains Bullish
On February 2, Bitcoin fell below the psychological $100,000 mark, a first since January 27. The move came after former US President Donald Trump imposed new import tariffs on goods from China, Canada and Mexico, sparking fears about inflation and potential market impacts.
According to Ryan Lee, chief analyst at Bitget Research, this drop could be part of a larger correction, possibly taking $BTC to $95,000. "On the downside, this range remains a critical support. The relationship between US labor market data, Federal Reserve policy expectations and investor sentiment will be the deciding factors for BTC in the coming weeks," Lee said.
However, there are positive signs for Bitcoin! If the US labor market data, which will be released on February 7, indicates a slowdown in the economy, this could strengthen the case for interest rate cuts by the Federal Reserve — creating a more favorable scenario for assets like $BTC .
What is a “bear trap” and why could it boost BTC?
A bear trap occurs when there is a coordinated drop in the price of an asset, leading traders to believe that the market is on the verge of a downtrend when in fact the market is about to recover. This can cause many investors to sell their positions in a panic, only to see the price rise again shortly afterward.
Cryptocurrency market analysts, including Sensei, suggest that the current BTC correction could be exactly that: a false low before a new high. And the numbers reinforce this optimism!
In January, Bitcoin recorded its first monthly close above $100,000, ending the month at $102,412 — 6% above the previous all-time high of $96,441 set in November 2024. Additionally, spot Bitcoin ETFs surpassed the impressive milestone of $125 billion in assets under management.
How far can Bitcoin go in 2025?
The projections for $BTC throughout this market cycle are encouraging! Some analysts predict that the cryptocurrency could reach values between US$ 160,000 and US$ 180,000 by 2025. With a history of post-halving highs and growing institutional interest, Bitcoin remains on investors' radar as one of the most promising assets of the year.
Fonte: Cointelegraph
And you, do you think this BTC drop is a bear trap or a warning sign? Comment your opinion! And don't forget to like to stay up to date with all the crypto market updates! 🚀📈
Disclaimer: This content is not investment advice. Please do your own research and be fully informed before making any decisions.