The cryptocurrency market is showing initial stabilization after the recent sharp downturn, with several assets beginning to form structures that could support a potential recovery. The key focus now is on identifying which cryptocurrencies are demonstrating constructive momentum and how market participants could approach these developments.

As with any shifting market environment, maintaining caution, tracking key technical indicators, and waiting for confirmation signals remain important.

Bitcoin technical analysis

BTCUSD - 1 Day Time Frame

The price action of Bitcoin continues to be monitored closely. In the previous analysis, attention was brought to the daily close above a key resistance zone, which occurred after a sweep of sell-side liquidity — a signal that can indicate possible continuation to the upside.

However, it was also noted that this resistance zone sat relatively low within a broader bearish price delivery structure, making it important to evaluate how the price behaves when reaching the origin of that bearish delivery.

That phase is now in progress. On the daily chart, Bitcoin is currently testing this critical region while supported by strong bullish momentum. A sustained daily close above this level could imply a potential Change in State of Delivery (CISD), suggesting a shift from bearish to bullish market structure.

Bitcoin price target

If such confirmation appears, it could support the case for upward continuation, given that two foundational conditions — the sweep of sell-side liquidity and the break above resistance — have already taken place. In this scenario, risk management could be positioned below the internal low highlighted on the chart.

It is also relevant to monitor the remaining resistance zone marked in orange, as it may act as an interim barrier and temporarily limit upward progress.

On the other hand, if the CISD does not materialize and the price fails to hold above this level on a daily closing basis, the bearish context could remain more dominant for the time being. This outcome could result in a deeper move lower to retest additional sell-side liquidity levels before any stronger recovery attempt occurs.