Is Bitcoin Recovering?

Bitcoin Analysis 23.7.2025
After some time, it is useful to revisit Bitcoin and highlight the key zones currently worth monitoring. The latest price action offers indications of both potential continuation and possible weakness, raising the question of whether Bitcoin has enough momentum for another upward move or whether a bear flag is emerging that could lead to a lower low.

Bitcoin technical analysis

BTC 8.12

BTCUSD – 1 Day Time Frame

After reaching an all-time high of roughly $126,000 on October 6, 2025, Bitcoin declined by more than 36% and established a local low near $80,000. If a new strong uptrend eventually develops and pushes the market toward fresh highs, this would represent the deepest correction of the current cycle.

For continuation, however, stronger upward impulses would be needed. Although the structure technically remains in an uptrend, the market has gradually been sweeping liquidity above while leaving new liquidity resting below. This price behavior is characteristic of a bear flag, a formation that, in many historical cases, has preceded a breakdown below the swing lows created during the temporary upward channel.

If such a scenario unfolds, the support zone shown on the chart may struggle to hold, opening the possibility of a deeper move lower.

Bitcoin price target

The price is currently pressing against the most recent resistance zone, attempting to break through it. Invalidating the bear flag scenario would require closing above this zone and reclaiming at least 50% of the range. Beyond that, another resistance area aligned with the trend line remains a significant obstacle and would also need to be closed above to shift the broader context.

A move toward the $100,000 region remains within the realm of possibility, as this area contains substantial liquidity that the market could seek to capture if upward momentum strengthens.

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