Bitcoin bull trap? Which levels are we watching during the current correction?

Crypto Prices Remain Volatile as Bitcoin Briefly Recovers $100,000 Level

On February 4, cryptocurrency prices remained unstable, with Bitcoin briefly reclaiming the $100,000 level after U.S. President Donald Trump halted tariff threats against Canada and Mexico.

However, the relief rally was short-lived as China announced retaliatory tariffs on U.S. products, including a 15% tariff on coal and liquefied natural gas, along with an additional 10% tariff on crude oil, agricultural machinery, and certain vehicles.

This news pushed Bitcoin’s price back down to $98,000, as renewed concerns over a trade war dampened optimism.
Let’s examine the key levels to watch in the short term as the Bitcoin market ($99,576) reacts to Trump’s trade wars.

The “Golden Zone” for Bitcoin Extends Toward $90,000

After reaching a previous all-time high above $108,000 last month, Bitcoin dropped toward the $90,000 zone on February 3.

This is a critical level that traders have been closely watching, having been tested multiple times since November 18.

Trader George notes that the current market situation for Bitcoin presents two possible scenarios.

“It depends on whether you think the bottom has already been reached or not,” he stated in a post on X on February 4.

According to him, the optimal trade entry zone (OTE) is between $93,000 and $95,000, provided the immediate support levels hold.

If this level fails, George advises focusing on lower price levels and waiting for another significant drop before buying.

“I think we have a bottom for now, but we’ll likely see some more range-bound movement in early February before a larger expansion later this month,” he added.

Key Fibonacci Levels Suggest Potential Support Zones

Using Fibonacci retracement levels, analyst Mark Cullen highlighted several possible support levels.

According to Cullen, the weekly opening level at around the 38.2% Fibonacci retracement level near $98,000 is “a good spot for a shallow correction before continuing upward.”

However, he also pointed out the presence of a “bullish order block and golden zone” around $95,000.

“If BTC wants to shake out late longs, this is another area I’d be watching,” he added.

Bitcoin Could Reach a New All-Time High in February

Meanwhile, MN Capital founder Michael van de Poppe stated that Bitcoin could hit a new all-time high in February if it holds above $93,000.

“I believe we’ll see new all-time highs in February, and it’s completely normal to see a correction after such a strong rebound,” he noted.

Bitcoin Needs to Hold Above $97,000

Analyzing the distribution of Bitcoin’s realized price (URPD) can help identify where unspent transaction outputs (UTXOs) were created, giving insights into key support and resistance zones.

According to Glassnode’s chart, some of the critical Bitcoin support levels to watch are $97,500, $96,450, and $94,300.

On the other hand, Bitcoin’s key resistance levels are $100,780 and $101,867.

The immediate support level just above $97,000 is particularly important, according to Bitcoin’s liquidation heatmap from CoinGlass.

A “wall” of buy order liquidity is forming above this level, suggesting that a retest of support and liquidity accumulation in this zone is becoming increasingly likely in the short term.

As reported by Cointelegraph, derivative market data suggests that the bottom has likely already been reached, but investor fears could temporarily limit Bitcoin’s recovery above $100,000.