Bitcoin (BTC) Price Enters Short-Term Correction: Imminent Breakout Expected by Weekend

Bitcoin is moving towards its date with destiny. Will this be a breakout to the upside that takes the $BTC price back to the all-time high, or will this be a plunge into a bear market that could waylay Bitcoin for the entirety of 2026?

$BTC price enters corrective phase

Source: TradingView

The last upside leg for $BTC took the price to the downtrend line and just above the $90,500 horizontal resistance level. However, this was achieved with the last gasp of momentum, and now the price is in a corrective phase. This is all perfectly normal. It’s just like the ebb and flow of the tide. 

Nevertheless, the price was able to make a higher high, and if it is able to stay around the major ascending trendline, or if it does go below, it doesn’t make a lower low, then all could be set for an upside breakout at the end of this week.

Of course, if a lower low forms and the price stays depressed, a breakdown rather than a breakout could be the result. 

Head and shoulders pattern within the bear flag

Source: TradingView

In the daily chart a cause for concern is apparent. It can be observed that the $BTC price is still traversing in a bear flag, but also that a head and shoulders pattern has formed within it. It’s bad enough that bear flags normally break downwards, but having a head and shoulders pattern within it as well makes things doubly bearish.

In addition, the daily Stochastic RSI indicators are shaping to cross back down. One has to look back at the 4-hour chart to note that the Stochastic RSI indicator lines on that time frame are bottoming. The bulls will be hoping that when they cross back up they will signal enough upside momentum to prevent the bearish scenario playing out.

Bitcoin on the brink

Source: TradingView

The $BTC price is on the brink. A weekly candle close below the major ascending trendline could spell disaster. That said, moving into 2026, there are many bullish factors for Bitcoin. This would suggest that any kind of bearish breakdown here could still be reversed, as long as the US stock market stays strong.

Assuming that the $BTC price does break down, what could be the worst downside target? $80,000 is probably the next leg down if there is to be one. This corresponds with the previous local low, and also with a good horizontal resistance level. If this didn’t hold, then the major horizontal support band from $74,000 to $69,000 comes into play. 

All this said, it needs to be borne in mind that the Stochastic RSI indicators in this weekly time frame are not far from the bottom, and this is also the case for the 2-week time frame. Add to this that the RSI indicator is at its lowest position since the start of this bull market, and one gets the idea that a bottom is either forming, or it’s not far off.

Taking the price to the brink and beyond is how market makers get investors to sell their coins. Will yours be among them?

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.