BITCOIN - STRUCTURAL SHIFT AMID CORRECTION & LIQUIDITY TESTSymbol - BTCUSD
CMP - 1,05,634
Bitcoin is experiencing a recovery following a liquidity sweep in the 1,00,000 zone. Despite the broader bullish trend, the local technical outlook remains mixed.
Bitcoin is currently undergoing a shift in market structure, with a change in character observed around the 1,06,700 level and a breakdown of the bullish structure at 1,03,000 during a corrective phase. This downward movement is testing liquidity beneath the 1,00,700 support zone. Several factors contribute to the ongoing liquidation: notably, the unexpected market reaction to tensions between Donald Trump and Elon Musk, and the liquidation activities of large holders (whales), which appear to be repeating historical patterns.
While traders are actively buying back Bitcoin, the overall market structure remains technically bearish. Locally, a downtrend is present, and a countertrend move interpreted as a form of 'liquidity hunting' is currently developing.
A key area of interest lies between 1,05,900 and 1,06,700. The initial retest of this zone may result in a false breakout due to insufficient momentum for sustained upward movement following the strong buyback.
Resistance levels: 105900, 106720, 110400
Support levels: 103000, 101400, 100,000
Following a correction from the 1,05,900 level, which may target the 50% retracement of the recent trading range, the market could potentially re-enter a bullish phase, provided buyers manage to maintain price levels and prevent a drop to new local lows. In the short term, a decline from 1,05,900 to 1,03,000 is anticipated. However, if the price subsequently recovers to the 1,05,500–1,05,900 range, there may be an opportunity for further upward movement toward the 1,10,000 level.
