Bitcoin has retraced to lower levels after reaching its all-time high in early October, returning to the key psychological area near $90,000. Although this decline may appear significant, the broader market structure remains bullish, which can understandably create uncertainty for market participants attempting to interpret the current movement.

The question now is which signals could indicate that the corrective phase is nearing completion and that Bitcoin may be preparing for another upward leg.

Bitcoin technical analysis

BTCUSD - 1 Day Time Frame

From a broader theoretical perspective, even strong external trends naturally include internal corrective phases. When the price of an asset within a bullish structure forms a higher high, a subsequent correction is not only plausible but statistically common. The depth of this correction varies depending on additional market factors. With this in mind, Bitcoin’s current pullback can be viewed as a standard corrective response rather than an immediate bearish reversal.

It is also important to emphasize that a substantial amount of Sell-Side Liquidity was likely taken during this decline. The price moved not only below the 0.5 Fibonacci retracement level, but also below two important lows created during the previous impulsive rally.

These lows matter because as the price advanced earlier, traders continually shifted protective Sell Stop orders upward. When the price reversed, these stops were triggered, generating a concentrated liquidity pool that the market absorbed.

In summary, Bitcoin’s broader technical picture still leans bullish, even as the market works through a short-term corrective decline. Several important lows have already been broken, indicating that a substantial amount of liquidity has been cleared from the downside. From here, the key factor will be whether bullish price delivery begins to reassert itself, which could help clarify the next phase of the trend.

In recent days, the daily chart has produced a sequence of consecutive bearish candles (labeled “beginning” on the attached chart). In the coming sessions, the main parameter to monitor is whether Bitcoin can close above the opening price of the first candle in this bearish series.

A close above this level could indicate a shift in the delivery of price and potentially signal that momentum is turning back toward the bullish trend.