Bitcoin may be heading toward a “bear trap” below $95,000 despite securing its first monthly close above $100,000. Bitcoin (BTC) dipped below the $100,000 psychological level on Feb. 2, for the first time since Jan. 27, according to Markets Pro data. This drop comes amid concerns over inflation, triggered by President Donald Trump’s tariffs on imports from China, Canada, and Mexico. However, the dip could mark the beginning 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 main catalysts to monitor in the coming weeks,”.
Nevertheless, Bitcoin may see further upward movement in February if next week’s labor market data points to a “sluggish economy,” the analyst added. The US Bureau of Labor Statistics is set to release its US labor market report on Feb. 7. Weak labor market data could strengthen the case for a rate cut by the Federal Reserve, creating a “more supportive environment for Bitcoin,” according to Lee.
Bitcoin Secures Record Monthly Close Above $102,000
Bitcoin achieved its first-ever monthly close above $100,000 in January, closing the month at $102,412 — a 6% increase over its previous record of $96,441, set in November 2024. A bear trap is a temporary dip in an asset’s price that occurs during a long-term uptrend, typically caused by coordinated selling. Despite the potential for a short-term correction, Bitcoin’s long-term 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 in the US on Jan. 11, 2024. Analyst predictions for Bitcoin’s price in the remaining 2025 market cycle range from $160,000 to above $180,000.
Conclusion:
While Bitcoin faces the possibility of a short-term correction towards the $95,000 range, the broader outlook remains optimistic. If labor market data signals a weaker economy, it could fuel further bullish momentum for Bitcoin. The record $102K monthly close and the success of Bitcoin ETFs also suggest a promising long-term trajectory for the digital asset.
FAQs:
What is a “bear trap”?
A bear trap is a temporary dip in an asset’s price that creates a false impression of a market downturn, often occurring during a long-term upward trend.
Why did Bitcoin drop below $100,000 in early February?
The drop was primarily due to inflation concerns following President Trump’s newly imposed tariffs on imports from China, Canada, and Mexico.
What is Bitcoin’s price outlook for the rest of 2025?
Despite short-term corrections, analysts are optimistic about Bitcoin’s prospects, with price predictions ranging from $160,000 to over $180,000 by the end of 2025.
I am Toby Rothschild, Co-Founder of Spearmint and author at Coinography, and a strategist focused on advancing Web3 innovation, digital ecosystems, and the future of decentralized technology. I combine product thinking, creative leadership, and deep interest in emerging trends to help shape how individuals and organizations interact with the next generation of digital systems.
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