Just a few days ago, the cryptocurrency market underwent a correction of over 5%, raising doubts about the continuation of the recent bullish momentum. These concerns were heightened after Bitcoin closed below a key support zone, signaling weakness from a structural perspective.

However, recent price action suggests that the bearish scenario may not be as straightforward as it initially appeared. In fact, current developments indicate a potential shift, and for traders anticipating renewed upside, it's now critical to monitor one specific zone that could determine whether this correction evolves into a new buying opportunity.

Such an opportunity is best understood through the lens of technical structure, particularly in relation to the key zone mentioned earlier. Let’s break it down step by step.

Bitcoin technical analysis

BTCUSD - 1 Day Time Frame

The most recent correction was notable in terms of depth, as the bearish move pushed the price below a previously established bullish support zone—now converted into a bearish resistance level. This zone currently acts as the last line of defense for the bearish case.

For better clarity, we’ve marked this zone in orange following the adjustment. As long as the price remains below it on the daily timeframe, the odds continue to favor further downside.

However, the outlook could change significantly if the price closes above this zone on the daily chart. Such a move could flip the zone’s technical character from resistance back to support, providing a more structural basis for re-entry into long positions—provided that appropriate risk and money management protocols are adopted.

Bitcoin price target

If the price closes above the key resistance zone on the daily timeframe and strengthens the setup, a first step for traders may be to define their maximum acceptable loss. Risks are best safeguarded, and one way to do so is through setting Stop loss orders, which in this case could reasonably be placed below the internal low, as shown on the attached chart.

For profit targets, the position could aim for the next Buy-Side Liquidity levels, with additional psychological milestones at $115,000 and $120,000.