Bitcoin Breaks Bearish Structure: Higher Low as a Possible Launchpad to New Highs?

Bitcoin has broken its bearish market structure for the first time since reaching its all-time high. Key resistance is identified at $94,259, while a potential higher low at $81,850 may provide structural support. Volume remains below average, necessitating caution for traders. Key upcoming price movements hinge on the breakout’s sustainability and trader sentiment regarding pullbacks.

Bitcoin has recently exited a prolonged bearish market structure, suggesting a shift in market sentiment. As the price approaches a crucial resistance zone, the upcoming days will be vital in determining the next market movement.

The price of Bitcoin (BTC) has decisively shifted from the descending market structure that dominated since the all-time high. For several weeks, a pattern of lower highs and lower lows indicated ongoing weakness and potential downside continuation. However, this trend has been disrupted with the establishment of a new higher high.

This current rally is nearing a significant resistance level at $94,259, which is noteworthy because it encompasses the structural value area low, the previous range high, and a respected daily support/resistance point. A break and close above this crucial resistance would validate bullish continuation, potentially leading to a retest of the all-time highs.

Conversely, if Bitcoin cannot break through this resistance convincingly, a retracement to around $81,850 may occur, which could establish a higher low. This would remain structurally healthy, reinforcing that the recent peak is part of a new bullish sequence. A pullback at this level would support the bullish outlook, provided prices stay above previous lows.

The $81,850 level is technically significant as it corresponds with the recent breakout zone, serving as a natural area for a higher low to form. If this level holds, it would confirm a clean market structure shift and potentially energise upward momentum.

Despite the bullish structural shift, one significant concern is the volume. Although the market structure has transitioned bullishly, the volume accompanying this movement is below average. Typically, breakouts are supported by increased participation, so vigilance is necessary in monitoring price levels and buyer momentum in the coming days.

Looking ahead, if Bitcoin struggles to breach the $94,259 resistance, a short-term pullback towards $81,850 is likely. This scenario would still be supportive of a bullish higher low formation, fostering potential trend continuation. However, the lack of a definitive volume breakout keeps the market vulnerable. Traders should closely observe both structure and volume to ascertain the sustainability of this breakout versus a mere price deviation.