In our previous Bitcoin analysis, the focus was on the technical background behind the bearish impulsive movement that occurred on October 10. Key levels were outlined, and multiple possible scenarios were identified for the days ahead. One of those scenarios has now unfolded, prompting an updated look at the price structure of Bitcoin and the key question: “When could it be appropriate to reenter the market?”

Bitcoin technical analysis

BTCUSD - 1 Day Time Frame

The daily timeframe currently presents two clearly defined resistance zones (marked in orange on the chart). The strong bearish movement observed earlier resulted in a withdrawal of Sell-Side Liquidity, as the price dropped below several significant lows.

On October 12, a new liquidity level was formed, creating conditions for another potential downward move — which indeed materialized. This led to the development of a new resistance zone on the daily chart. The first meaningful bullish response appeared after the price tested the blue support zone, marking the end of the sharp decline seen on October 10.

Although the technical setup may seem complex, the conclusion can be summarized relatively simply. The recent drop cleared a substantial amount of liquidity, meaning that the market may have created conditions suitable for renewed institutional participation. The key focus now lies on whether a clear technical signal for entry emerges.

Bitcoin price target

A potential shift could be confirmed if Bitcoin closes above the lower resistance zone on the daily timeframe. The probability of a bullish continuation could further increase if the price also closes above the opening level of the first bearish candle — the point representing the beginning of the bearish price delivery (indicated by the dark horizontal line on the chart).

In such a scenario, long positions could be considered, with a Stop Loss placed below the internal minimum near the blue support zone. Profit targets could be aligned with key psychological levels at $130,000, $140,000, and $150,000, depending on the chosen holding approach.

However, the upper resistance zone remains an important technical barrier and could exert selling pressure upon retest. Continuous observation of price action during any test of this level will be essential to evaluate whether the potential bullish scenario continues to hold.