Bitcoin’s Calculated Correction Points to Bullish Revival

Bitcoin continues demonstrating remarkable resilience as it navigates a short-term correction within a firmly established uptrend across all major timeframes. Trading at $121,642 on the two-hour chart, BTC is experiencing precisely the healthy pullback analysts anticipated after its recent surge past $122,000.

Yesterday’s analysis correctly identified the potential for consolidation as momentum indicators showed overbought conditions on daily timeframes. Today confirms that prediction, with the two-hour and four-hour charts displaying bearish momentum as price slides across DEMA support levels. However, this weakness appears temporary rather than trend-reversing.

The technical picture reveals compelling evidence for imminent bullish revival. Stochastic RSI readings have plunged into deeply oversold territory across two-hour, four-hour, six-hour, and twelve-hour timeframes, with values hovering around 15-25. Such extreme oversold conditions historically precede sharp reversals. Critically, the MACD remains positive on four-hour and six-hour charts despite the price decline, suggesting underlying bullish momentum persists.

The six-hour chart shows DEMAs converging with price near $121,500, establishing crucial support precisely where technical analysis suggested. Meanwhile, longer timeframes paint an unambiguously bullish picture. The twelve-hour ADX registers above 45, indicating exceptional trend strength, while the daily timeframe maintains a positive MACD crossover with the histogram at 716.

Looking ahead, Bitcoin appears positioned for renewed upward momentum once current oversold conditions resolve. Support holds firm between $120,000-$121,500, with resistance targets at $124,000-$125,000 coming into focus. The convergence of oversold shorter timeframes and bullish longer timeframes creates an attractive risk-reward setup favoring longs