Bitcoin may be headed to a \u201cbear trap\u201d below $95,000 despite staging its first monthly close above $100,000.<\/p>\n
Bitcoin (BTC<\/a>) fell below the $100,000 psychological mark on Feb. 2 for the first time since Jan. 27, Cointelegraph Markets Pro<\/a> data shows<\/p>\n BTC\/USD, 1-month chart. Source: Cointelegraph Markets Pro<\/em><\/p>\n<\/figcaption><\/figure>\n The decline comes amid inflation concerns after President Donald Trump imposed import tariffs on goods<\/a> from China, Canada and Mexico.<\/p>\n However, the dip could be the start of a wider correction, potentially taking Bitcoin to $95,000, according to Ryan Lee, chief analyst at Bitget Research.<\/p>\n \u201cOn 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,\u201d Lee told Cointelegraph.<\/p>\n However, Bitcoin could see more upside in February<\/a> if next week\u2019s labor market data points to a \u201csluggish economy,\u201d added the analyst.<\/p>\n The US Bureau of Labor Statistics is set to publish its US labor market report on Feb. 7. Weakening labor market data may strengthen the case for a rate cut by the Federal Reserve, which creates a \u201cmore supportive environment for Bitcoin,\u201d according to Lee.<\/p>\n Related: <\/strong><\/em>Czech National Bank governor to propose $7B Bitcoin reserve plan<\/strong><\/em><\/a><\/p>\n However, Bitcoin recorded its first monthly close above $100,000 in crypto history in January.<\/p>\n Bitcoin closed the month above $102,412, which is over 6% higher than its previous record monthly close of 96,441, registered in November 2024.<\/p>\n BTC\/USD, monthly chart. Source: Cointelegraph\/TradingView<\/em><\/p>\n<\/figcaption><\/figure>\n Some analysts believe that Bitcoin\u2019s current correction may only be a bear trap<\/a>, including popular crypto analyst Sensei, who shared the below chart in a Feb. 2 X post<\/a>.<\/p>\n Bitcoin bear trap, market psychology. Source: <\/em>Sensei<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n A bear trap<\/a> is a form of coordinated but controlled selling that creates a temporary dip in an asset\u2019s price. It typically comprises a significant correction during a long-term uptrend.<\/p>\n Related: <\/strong><\/em>$36T US debt ceiling signals Bitcoin correction after Trump inauguration<\/strong><\/em><\/a><\/p>\n Despite the potential for a short-term correction, Bitcoin\u2019s prospects remain bullish for the rest of 2025, especially after spot Bitcoin exchange-traded funds (ETFs) surpassed a record $125 billion milestone<\/a> just over a year after they first debuted for trading<\/a> in the US on Jan. 11, 2024.<\/p>\n Analyst predictions for the rest of the 2025 market cycle range from $160,000<\/a> to above $180,000<\/a>.<\/p>\nBitcoins Bitcoin secures record monthly close above $102,000<\/h2>\n