After reaching a new historical peak at $121,400, the price of Bitcoin (BTC) has begun a consolidation phase, with the support level of $117,000 continuing to hold. This is completely normal in strong bull cycles, where the market needs time to 'cool down' to maintain sustainable growth momentum. However, some technical analyses suggest that a deeper correction may be approaching before BTC enters a new surge.

Risk of a Deep Correction: Warnings from Technical Analysis

Analyst TehThomas on the TradingView platform warns that, although the current support level is effective, a short-term correction is still possible. In fact, BTC could retreat further to test new support levels forming around $109,000–$110,000.

According to TehThomas, the continuous establishment of new highs for Bitcoin has put the market into 'uncharted territory' — where profit-taking pressure increases as investors want to secure profits. This could trigger a new wave of selling, pushing prices back to lower support areas to clear liquidity and create a solid foundation for the next increase.

An important technical factor highlighted is the formation of an ascending trendline combined with a horizontal support area. This trendline crosses the $111,000–$113,000 area, indicating a high likelihood that BTC will retest this area if a correction occurs.

Is the retest a long-term positive signal?

Despite the risk of a deep correction, TehThomas believes that a 'liquidity sweep' down to $110,000 would have long-term positive implications. Testing strong supports again could help the price bounce back with stronger momentum, paving the way for a more sustainable breakout in the near future.

The analyst also notes that, as long as the price remains above $110,000, the market structure still leans towards a bullish trend. In the current 'price discovery' phase, corrections are necessary to create a new price level before further increases.

The Bullish Scenario Remains Very Viable

Besides the possibility of a correction, the scenario of continuing to rise from the current area cannot be ruled out. If the uptrend line holds, BTC could continue to rise with a short-term target around $120,000–$125,000.

According to TehThomas:

"Bitcoin is in a price discovery phase, so the price structure will be the guiding factor for expectations. A light retest around the trendline or old resistance could become an optimal entry point for investors."

In Summary

  • ✅ BTC price remains stable at the support level of $117,000 after setting an ATH of $121,400.

    ⚠️ The possibility of a short-term correction still exists, potentially down to the $110,000–$113,000 range.

  • 🔄 Retesting support levels is not a negative signal, but could be a stepping stone for a stronger increase.

  • 📈 If it holds above $110,000, BTC remains in a medium-long term upward trend.

In the context of a heated market, investors need to be patient, cautious, and observe key support zones to formulate appropriate entry strategies.