The leading cryptocurrency Bitcoin (BTC) started the week with a rise of $90,000, but this increase was short-lived and the price fell back to around $87,000.
While BTC appears poised to close 2025 below $90,000, analysts are warning that the recent BTC decline is a bear trap and expect a recovery in January.
Beware of the Bear Trap in Bitcoin!
According to analyst James Bull, Bitcoin’s drop of more than 2.6% shortly after regaining the $90,000 level on Monday could be a classic “Christmas bear trap”.
The analyst predicted a significant recovery in Bitcoin in January 2026, similar to patterns observed over the past four years.
Bull pointed out that Bitcoin fell by 8.5% between December 26 and December 31, 2024, but rose by 12.5% between January 1 and January 6, 2025.
“Bitcoin is setting a Christmas trap that will reverse in January, just like it has for the last 4 years.”
Bull also stated that ETF outflows have decreased and are progressing towards zero. He noted that a similar scenario occurred in April, after which Bitcoin reached $112,000 on May 22nd with a 33% price increase.
The analyst said, “This isn’t a guarantee that Bitcoin will return to its all-time highs, but it’s a strong bullish signal.”
Another analyst, known by the nickname “Bitcoin Therapist,” said that with the four-year halving cycle pattern breaking, Bitcoin could reach a new all-time high in the first quarter of 2026.
The analyst added that this could also constitute the biggest bear trap in history.
The analyst also noted that, based on the daily chart, BTC has formed a symmetrical triangle pattern. If the price makes a daily close above the upper trendline of the pattern, which is $90,000, and continues to rise, the next target could be $107,400.
Citi Group analysts also made a bullish forecast for Bitcoin. Citi analysts set their 12-month base scenario forecast for Bitcoin at $143,000, primarily due to revived ETF demand, while their bullish scenario target was set at $189,000.
*This is not investment advice.
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