Bitcoin (BTC) is currently operating within an internal bearish structure, defined by a sequence of lower highs and lower lows. Recently, the price swept Sell-Side Liquidity below last year’s lows, clearing the sell stop orders positioned beneath that critical level. This type of move is a typical liquidity run that often acts as a reset, where price either continues within the existing bearish structure or begins to signal a shift if that structure is broken.

Bitcoin technical analysis

BTCUSD - 4 Hour Time Frame

The key question for Bitcoin is whether the cryptocurrency market will continue within this internal bearish structure or move beyond it. If price breaks above the current bearish structure and clears key resistance levels on the daily timeframe, it could signal the potential beginning of a bullish continuation, effectively invalidating the internal bearish trend and transitioning the market into a more constructive flow.

If such a breakout develops, it would represent a Change in State of Delivery (CISD), marking a transition from bearish structure into bullish price delivery. This could suggest that sell-side pressure has been absorbed and that the market is beginning to search for fresh demand to support the next phase of price action.

If Bitcoin breaks above the internal bearish structure, the natural objectives for the next bullish phase could be the Buy-Side Liquidity levels. These are areas toward which price often gravitates once the market confirms that buyers have regained control and selling pressure has weakened.

Until such a development occurs, the bearish structure remains active, and the market could continue consolidating or drifting lower. However, if the structure is invalidated and price establishes itself above current resistance, the balance of probabilities could shift toward bullish continuation.