May 2025 marks a milestone for cryptocurrency enthusiasts, particularly for traders and investors active in the space. Bitcoin, the undisputed leader of the digital asset market, has once again broken through its previous all-time high, surpassing the $110,00 mark.

Moments like these are pivotal—not only because they reflect strong bullish momentum, but also because they demand a clear strategy. In today’s analysis, we’ll explore what this price action could mean in the short and long term, and how you can navigate the path forward.

Bitcoin technical analysis

BTCUSD - 1 Day Time Frame

Currently, the most important focus is on analyzing Bitcoin’s price action from a daily timeframe perspective. A critical support zone has been identified, shown as the upper blue area on the attached chart.

However, it’s important to note that the trading day is not yet complete, and there remains a possibility of a retracement toward the high from the day before yesterday. Such a move could fully rebalance recent price action and result in the disappearance of the current support zone.

For the bullish momentum to continue, it would be preferable for this support zone to remain intact. This could also serve as a robust technical signal for holding buy positions at full volume.

Should the price close below this zone in the coming days, it could indicate the beginning of a correction phase—something not unusual after a new all-time high.

From our perspective, this would be the first early sign of a potential structural shift. If a second confirmation appears, it would further support the likelihood of a corrective move.

BTCUSD - 4 Hour Time Frame

Shifting to the four-hour timeframe, we can see additional support zones. These also act as key indicators of bullish momentum and price delivery, just like the support zone on the daily timeframe.

As long as the price remains above the lower support zone, buy positions may continue to be valid at full volume, and the probability of a correction remains lower.

BTCUSD - 1 Day Time Frame

However, if the price breaks below both the daily support zone and the lower four-hour support zone, a correction becomes increasingly likely—targeting the 0.5 Fibonacci level, a classic retracement zone.

On the provided chart, we’ve marked two previous corrections that targeted areas below this level, followed by renewed bullish momentum.