Bitcoin has recovered strongly from the lower structure and is now approaching a major supply/resistance zone where sellers have repeatedly stepped in. The repeated reactions around this area make it an important decision point for the next major move.

Price is currently pressing into resistance after forming a series of higher lows during the recovery. While this shows improving short-term buying momentum, the upside remains challenged as long as BTC fails to achieve a convincing breakout above the supply zone. The previous rejections suggest that liquidity may be sitting above the recent highs, creating the possibility of a liquidity sweep followed by a bearish reversal.

If price gets rejected from the zone and sellers regain control, the marked support levels below become the key areas to monitor. A sustained move lower would confirm that the current rally was primarily a recovery into resistance rather than the beginning of a larger bullish breakout.

For the bearish setup, confirmation is important rather than entering solely on the first touch of resistance. A strong rejection candle, bearish follow-through, and loss of nearby short-term structure would provide stronger evidence that sellers are taking control.

However, the bearish scenario has a clear invalidation point. Break and hold above the supply zone would invalidate the bearish setup and signal the start of a bullish continuation. If BTC breaks through resistance with strong momentum and successfully retests the zone as support, sellers could be trapped and the market may begin expanding higher.