Bitcoin Price Analysis: BTC Hits Key Decision Zone After 20% Monthly Rally

Bitcoin continued its recovery structure with buyers gradually regaining control. The recent upward extension has pushed the market back to key resistance levels, while momentum indicators and market structure suggest that BTC is trying to transition from a corrective phase to a broader bullish continuation. However, the market is now approaching a decisive area where confirmation is required before a sustained rally can unfold.

Bitcoin Price Analysis: The Daily Chart

On the daily time frame, BTC has recently shown significant bullish momentum and managed to break slightly above the upper boundary of the ascending channel that has contained the price action for the past few months. This breakout is an important technical development as it signals the strengthening of copper dominance after weeks of gradual accumulation. Nevertheless, the outbreak still requires confirmation.

If the price stabilizes above the channel’s upper boundary at $80K and forms a successful pullback there, the breakout is likely to be validated, opening the door for another bearish leg to higher resistance zones. At the same time, Bitcoin is approaching a major resistance confluence around the $83K range, where the 200-day moving average is currently located.

This area can temporarily slow down the bullish momentum. In this structure, the broken price channel now acts as dynamic support, while the $83K-$85K region remains the next major obstacle for buyers.

BTC/USDT 4-hour chart

On the 4-hour chart, a new rising price channel has emerged, highlighted by the yellow structure. The market has respected both the upper and lower limits of this formation, indicating an orderly bullish trend in the short term. Bitcoin is currently trading near a significant resistance zone around the $81K-$84K range, represented by the green stock region.

Meanwhile, the $75K-$78K region, highlighted by the brown box, acts as the key short-term support. Given the proximity to resistance and the recent sharp rally, the market is likely to experience consolidation and fluctuating price action within this channel in the coming days. A breakout above the $81K-$84K resistance could trigger continuation to higher levels, while a rejection and collapse below the $75K-$78K support could lead to a deeper correction within the broader structure.

Sentiment Analysis

From a liquidation perspective, the heat map indicates that Bitcoin has recently swept through much of the liquidity concentrated around the $80K region. This indicates that a significant number of short positions have already been liquidated during the recent rally.

However, notable liquidity clusters still remain above the current market price, particularly around the $85K-$95K region, making these levels attractive targets for further upside extension and potential short pressure. On the other hand, significant pools of liquidity still exist at lower price levels, especially below the $60K-$70K range. These deeper liquidity zones could continue to attract price in the coming months if broader market conditions weaken or if the current breakout fails to sustain itself.

Overall, Bitcoin is showing improved bullish momentum after regaining key technical levels, but the market is now entering a critical resistance zone. The interaction between the broken ascending channel, the 200-day moving average around $88K-$90K, and the surrounding liquidity clusters will likely determine whether BTC can sustain a broader uptrend or enter another consolidation phase before the next big move.