Analysts call recent BTC dip a bear trap, see January rebound

Bitcoin's drop of over 2.6% on Dec. 29, which occurred shortly after it reclaimed the $90,000 level, is being analyzed as a classic bear trap. According to Cointelegraph, crypto investor James Bull, who has around 173,000 followers on X, suggested that the price action could be a "Christmas bear trap." He predicted a significant rebound in January 2026, similar to patterns observed over the past four years. Bull explained that last year, Bitcoin fell 8.5% between Dec. 26 and Dec. 31, 2024, only to rally 12.5% between Jan. 1 and Jan. 6, 2025. Another analyst, known as 'Bitcoin Therapist,' added that if the two-year halving cycle pattern is broken, Bitcoin could reach a new all-time high in the first quarter of 2026, which would complete what the analyst called the largest bear trap in history. Meanwhile, Cointelegraph noted that based on the daily chart, BTC is forming a symmetrical triangle pattern. If the price closes a daily candle above the pattern's upper trendline and continues to rise, the next target could be the $107,400 level.