Recent price action has refined Bitcoin’s trading range and may have formed a bullish Spring or Swing Failure Pattern, often a precursor to strong upward moves.

Bitcoin is showing signs of strength after a healthy correction, with technical signals and macro trends supporting a potential move towards a new all-time high, despite recent fluctuations.

The 4-hour chart indicates momentum loss after breaching the previous high around $125,000, with a Three Drives pattern suggesting buyer exhaustion and a critical support zone near $115,000 to $117,000, aligning with Fibonacci levels.

Open Interest analysis reveals that a decline during consolidation suggests short covering, while rising Open Interest on lower closes could indicate ongoing distribution, which might delay a breakout.

Binance liquidation heatmap shows a cluster of short-liquidation zones between $124,000 and $126,000, which caused a rejection, while larger liquidity pools above $126,000 up to $132,000 hint at institutional interest targeting higher levels.

A Spring or Swing Failure Pattern (SFP) has potentially set the stage for a breakout, with confirmation possible through a higher low on lower volume, signaling a possible rally toward a new all-time high.

On the daily chart, the RSI has cooled from overbought levels, indicating a momentum reset and room for stabilization, but a daily close below $117,000 could lead to a deeper correction towards $108,000.

Elliott Wave analysis shows a three-wave correction pattern from the swing low, which often precedes further upward movement, aligning with Wyckoff's market structure.

Support at a key demand zone and quick buyer response reaffirm underlying strength and bullish sentiment.

Bitcoin faced rejection from the $125,000 to $126,000 liquidity zone, leading to a correction towards the $117,000 to $120,000 support range.

The correction appears healthy and corrective, supported by the 100-day moving average, ascending trendline, and Fibonacci levels, suggesting a higher low formation.

On-chain data indicates a short-term consolidation bias as leveraged positions unwind, but once demand zones stabilize, Bitcoin could surge toward $130,000, continuing its bullish trend.

Market structure analysis suggests Bitcoin may be in a validation phase, where forming a higher low on lower volume could confirm bullish momentum.