#BitcoinPriceWatch

Bitcoin Price Rebounds From $80K Lows, but a Bull Trap May Be Forming

Bitcoin dipped 1.3% on Tuesday, settling near $87,177 after recovering from Friday’s steep fall to $80,000—its weakest level in seven months. Although I had been expecting a push toward the bearish zone around $74,000, the decline paused at the $83,000–$84,000 area. A strong bullish pin bar formed in that zone, marked by a long lower wick, suggesting sellers were firmly rejected and buyers regained control.

That reaction has fueled a short-term relief rally. I still anticipate this bounce could extend into the $92,000–$94,000 region, which has acted as a significant resistance area in my earlier analysis. However, I view this rise as a likely bull trap or dead-cat bounce rather than the start of a sustained reversal. My main downside target remains $74,000, a level I expect Bitcoin to revisit as its potential yearly low for 2025. Should price reach this zone, it’s where I plan to begin accumulating again, assuming a return to the broader uptrend afterward.

At the moment, Bitcoin is hovering just below the upper end of its recovery range near $88,500. Friday’s $80,000 low now stands out as a fresh demand zone, while the $83,000–$84,000 support area continues to serve as the foundation of the current rebound. On the upside, the next major test lies at $92,000–$94,000, and only a decisive move above $100,000 would invalidate the bearish outlook and signal a true trend shift.

Institutional sentiment also appears cautious. Paul Howard, Director at Wincent, noted that whale selling and tightening liquidity at the end of October triggered unwinds in basis trades and contributed to ETF outflows. Combined with the typical year-end practice of reducing crypto exposure for reporting purposes, he believes the market’s tone will remain muted. “I don’t expect Bitcoin to return to the $100,000 region before Q1,” he added.