Bitcoin 2026 Bull Case: Traders See 'strong Signals' For 6-figure...

Traders spotted strong bullish signals for Bitcoin, including a potential bear trap reversal and a technical breakout projecting a rally to $107,000 next month.

Bitcoin (BTC) entered its final week of the year down 30% from its $126,000 all-time high reached on Oct. 6. Has BTC finally peaked, or is there a relief in the cards going into 2026?

A typical "Christmas bear trap" may precede a potential relief rally into 2026.

Cooling ETF outflows, less long-term holder sell pressure and macro factors suggest an extended bull cycle is possible.

BTC’s symmetrical triangle projects a 22% increase to $107,000.

Bitcoin’s 2.6% drop from a high of $90,000 reached on Monday could be a classic “Christmas bear trap,” according to analyst James Bull.

A bear trap is a false technical signal where price briefly breaks below a key support level, triggering sell-offs and stop-losses, only to quickly reverse upward, trapping bears (short sellers) in losses.

Related: Bitfinex whales go long BTC for 2026: 5 things to know in Bitcoin this week

Bitcoin is setting a “Christmas bear trap, which will be reversed in January like in the last 4 years,” James Bull said in a Monday post on X.

Looking at the most recent case, the BTC/USD pair dropped 8.5% between Dec. 26 and Dec. 31, 2024, before reversing with a 12.5% between Jan. 1 and Jan. 6, 2025.

Source: CoinTelegraph