Bitcoin's rebound to $74,000 has sparked divisions, with the market debating whether it is a "bull trap."

Bitcoin recently rebounded to $74,000 before falling back to around $70,000, with the market showing clear divisions on whether this position has formed a temporary top. Some analysts believe the current trend is highly similar to the mid-structure of the 2022 bear market.

Data shows that Bitcoin reached a high of $126,000 in October 2025, followed by a rebound peak approximately 149 days later, which is similar to the previous two cycles. Some traders believe that this round of increase may just be a liquidity trap, and the price could still further decline to below $60,000, or even test the liquidity dense area between $62,000 and $65,000. However, there are also analysts who hold the opposite view, believing that a temporary bottom has formed near $60,000.

Unlike in 2022, this round of correction has not effectively broken below the 200-week Exponential Moving Average (EMA), but instead rebounded after a retest, indicating a stronger market structure. Additionally, institutional funds continue to flow in through spot ETFs, and the tightening market supply is also seen as an important factor supporting prices. Bullish analysts believe that as long as the key support level of $70,000 remains intact, the market still has a chance to initiate a new upward movement towards the $75,000 to $80,000 range.