What’s Next for Bitcoin’s Price? – Bear Trap, Bottom, or Oversold Bounce?

As Bitcoin’s price recovers to the $85,000 mark after a sharp double-digit drawdown this week, traders are left wondering what’s next for the leading cryptocurrency. Will this bounce signal the bottom, or is it simply an oversold rally before a deeper correction? With choppy price action expected in the short term, the market is at a crossroads as Bitcoin needs to establish a new range after its recent volatility.

A Potential Bottom or Bear Trap?

Bitcoin's bounce to $85,000 on February 28 had many traders hopeful that the bottom might be in. However, the price action has raised concerns, as Bitcoin struggled to secure a higher-high candlestick for the daily close. This failure to establish a solid upward trend suggests that the market could still be in a period of indecision.

According to data from TRDR.io, Bitcoin received strong spot bids on Coinbase as the price dipped to a low of $78,300—its lowest point for 2025. While the spot bids provided some support, the key question remains whether bulls will be able to muster enough purchasing volume to sustain the current momentum or if the price will lose steam.

Range-Building Likely, Say Traders

Crypto trader Magus believes the most likely scenario for Bitcoin in the near term is a range-bound market between $72,000 and $85,000. In a post on X, Magus shared a chart illustrating this expected range, suggesting that Bitcoin may spend several weeks consolidating within this zone before a clearer trend emerges.

The lack of strong spot demand adds weight to this view. Without a significant influx of buying pressure, Bitcoin may continue to face choppy price action as it builds a new range.

Weekend Volatility and Macro Uncertainty

Trader Horse also expressed concern about Bitcoin’s price movement over the weekend. According to Horse, Bitcoin returns could trend downward as traders adjust their positions based on market expectations surrounding U.S. President Trump’s comments and the broader macroeconomic landscape.

"I’m guessing that BTC returns over the weekends will continue to go more negative than they already are, as traditional finance (tradfi) uses it to hedge for anything Trump says before Sunday futures open,” Horse remarked.

This added uncertainty from the political sphere could contribute to more volatility for Bitcoin in the short term, particularly over weekends when trading volumes can be lower.

A 30% Correction — A Normal Occurrence in Bitcoin Bull Markets

Despite the short-term uncertainty, many traders believe that Bitcoin's current correction—down 29% from its all-time high of $110,000—is not out of the ordinary. As noted by crypto trader ‘intern,’ a 30% drawdown during a Bitcoin bull market is fairly typical. In fact, these types of corrections have historically been viewed as optimal buying opportunities.

During previous bull markets, Bitcoin has experienced several large corrections, only to rally back and establish new all-time highs. Given the volatile nature of cryptocurrency markets, traders are increasingly seeing the recent pullback as a potential opportunity to buy the dip, especially if Bitcoin's long-term fundamentals remain strong.

Conclusion: Choppy Waters Ahead for Bitcoin

In the coming weeks, Bitcoin’s price is likely to remain choppy as it establishes a new range. While there’s no clear consensus on whether the bottom is in, many traders expect a period of consolidation between the $72,000 and $85,000 range before any decisive breakout or breakdown occurs.

For now, the 29% correction from Bitcoin's all-time high is not seen as extraordinary, and many traders remain optimistic that this pullback could present a good buying opportunity. However, traders should remain cautious as market sentiment can shift quickly, especially in light of macroeconomic factors and political developments.

As always with Bitcoin, volatility is the name of the game, and it’s clear that the next few weeks will be crucial in determining the direction for the cryptocurrency.