As we've highlighted in previous analyses, Bitcoin and the broader cryptocurrency market have been undergoing a natural correction phase since the beginning of the year. However, signs are now emerging that the market may be shifting direction.

Before the momentum on Bitcoin can truly be defined, there are key technical conditions that must be met. In today’s analysis, we’ll explore what needs to happen first and what investors and traders should be watching closely to position themselves more confidently for the next leg of the trend.

Daily time frame analysis

BTCUSD - 1 Day Time Frame

Think of price development like climbing a mountain. When a climber reaches a new height and secures their position, even if they slip, their safety gear is likely to catch them.

The same applies to price action in the market: closing above a key zone acts as that "secure anchor," confirming that momentum is strong enough to potentially continue upward, even if short-term volatility occurs.

Currently, Bitcoin is testing a critical resistance zone on the daily timeframe — one it failed to break during the last attempt, which led to a downward move. This time, however, the price is approaching the zone with significantly stronger momentum, backed by conditions that increase the likelihood of a successful breakout.

If the price closes above this orange resistance zone, it could serve as a strong signal for entering buy positions, given the strengthening bullish outlook for continued price growth. Until that confirmation occurs, however, the zone remains a key area of resistance, and price action may continue to consolidate or experience short-term pullbacks.