Like other leading cryptocurrencies, Bitcoin entered this trading week under pressure from bearish market activity. Although the price briefly stabilized on Wednesday, Thursday’s early trading pushed it lower again. This naturally raises the central question for both investors and short-term market participants: “Where could Bitcoin be headed within this correction, and at what point might signs of a reversal appear for major cryptocurrencies?”

Bitcoin technical analysis

BTCUSD - 1 Day Time Frame

To address this, it is important to consider why corrections occur in the first place. Broadly speaking, price movements serve to build and clear liquidity, creating temporary imbalances before rebalancing those zones. In Bitcoin’s current case, the decline appears linked to a process of liquidity selection.

On the daily timeframe, a resistance zone had been established earlier, which was later broken and converted into a support zone. However, after this breakout, price momentum slowed significantly, leading to an accumulation of liquidity. Rather than clearing that liquidity, the price continued climbing, which may have set the stage for the present pullback.

Bitcoin price target

For retail participants, the key focus now lies in whether this liquidity will be swept and, more importantly, how the price reacts afterward. A potential confirmation of renewed bullish momentum would come only if the price closes above the latest resistance zone — formed at the start of this week and highlighted in blue on the attached chart. If a new resistance zone develops, however, the conditions for confirmation could shift accordingly.

A protective Stop Loss could be considered below the internal low formed prior to the breakout above resistance, while upside targets remain linked to Buy-Side Liquidity levels and psychological milestones above the previous all-time high, such as $130,000.