The prominent cryptocurrency Bitcoin (BTC) kicked off the week with a surge of $90,000. However, this uptick was fleeting as the price quickly retreated to approximately $87,000.
As BTC seems likely to finish 2025 below the $90,000 mark, analysts caution that this recent downturn might be a bear trap and anticipate a rebound in January.
Caution: The Bear Trap in Bitcoin!
Analyst James Bull suggests that Bitcoin’s decline of over 2.6% shortly after reclaiming the $90,000 threshold on Monday could signify a typical “Christmas bear trap.”
Bull forecasts a notable recovery for Bitcoin in January 2026, drawing parallels to trends seen over the last four years.
He highlighted that Bitcoin experienced an 8.5% drop from December 26 to December 31, 2024; however, it rebounded by 12.5% between January 1 and January 6 of the following year.
“Bitcoin is creating a Christmas trap that will reverse come January—just like it has for four consecutive years.”
Bull also mentioned that ETF outflows have diminished significantly and are nearing zero levels. He recalled how a similar situation unfolded in April when Bitcoin surged to $112,000 on May 22 with an impressive increase of about 33%.
The analyst remarked, “While this doesn’t guarantee that Bitcoin will return to its peak values again soon, it’s certainly an encouraging bullish indicator.”
Another expert known as “Bitcoin Therapist” indicated that breaking away from the four-year halving cycle pattern could enable Bitcoin to achieve new all-time highs within Q1 of 2026.
This scenario might also represent one of history’s largest bear traps according to him.
The analyst observed that BTC has formed a symmetrical triangle pattern based on daily charts. If prices close above its upper trendline at around $90,000 and continue their ascent thereafter, potential targets may reach up to $107,400.
Citi Group analysts have also issued optimistic projections for Bitcoin’s future value. They established their base forecast for BTC at $143,000 over twelve months due mainly to renewed ETF interest while setting their bullish target at an ambitious $189,000.
*This information should not be considered investment advice.