diff --git a/atlasaction/bitbucket.go b/atlasaction/bitbucket.go
index e48001f3..5ef3f39b 100644
--- a/atlasaction/bitbucket.go
+++ b/atlasaction/bitbucket.go
@@ -8,6 +8,7 @@ import (
 	"fmt"
 	"io"
 	"net/url"
+	"os"
 	"path/filepath"
 	"strconv"
 	"strings"
@@ -77,18 +78,18 @@ func (a *bbPipe) SetOutput(name, value string) {
 	// So the next step can read the outputs using the source command.
 	// e.g:
 	// ```shell
-	// source $BITBUCKET_PIPE_STORAGE_DIR/outputs.sh
+	// source .atlas-action/outputs.sh
 	// ```
-	// https://support.atlassian.com/bitbucket-cloud/docs/advanced-techniques-for-writing-pipes/#Sharing-information-between-pipes
-	dir := a.getenv("BITBUCKET_PIPE_STORAGE_DIR")
-	if out := a.getenv("OUTPUT_DIR"); out != "" {
+	dir := filepath.Join(a.getenv("BITBUCKET_CLONE_DIR"), ".atlas-action")
+	if out := a.getenv("ATLAS_OUTPUT_DIR"); out != "" {
 		// The user can set the output directory using
-		// the OUTPUT_DIR environment variable.
+		// the ATLAS_OUTPUT_DIR environment variable.
 		// This is useful when the user wants to share the output
 		// with steps run outside the pipe.
 		dir = out
 	}
-	if dir == "" {
+	if err := os.MkdirAll(dir, 0700); err != nil {
+		a.Errorf("failed to create output directory %s: %v", dir, err)
 		return
 	}
 	cmd := a.getenv("ATLAS_ACTION_COMMAND")
diff --git a/atlasaction/bitbucket_test.go b/atlasaction/bitbucket_test.go
index de69a5a1..8af9e5b1 100644
--- a/atlasaction/bitbucket_test.go
+++ b/atlasaction/bitbucket_test.go
@@ -12,7 +12,7 @@ import (
 func TestBitbucketPipe(t *testing.T) {
 	var (
 		actions = "actions"
-		outputs = filepath.Join(actions, "outputs.sh")
+		outputs = filepath.Join("outputs.sh")
 	)
 	testscript.Run(t, testscript.Params{
 		Dir: filepath.Join("testdata", "bitbucket"),
@@ -23,6 +23,7 @@ func TestBitbucketPipe(t *testing.T) {
 			}
 			e.Setenv("BITBUCKET_PIPELINE_UUID", "fbfb4205-c666-42ed-983a-d27f47f2aad2")
 			e.Setenv("BITBUCKET_PIPE_STORAGE_DIR", dir)
+			e.Setenv("BITBUCKET_CLONE_DIR", e.WorkDir)
 			c, err := atlasexec.NewClient(e.WorkDir, "atlas")
 			if err != nil {
 				return err
diff --git a/atlasaction/testdata/bitbucket/schema-push.txtar b/atlasaction/testdata/bitbucket/schema-push.txtar
index 0bbfa069..29115ce2 100644
--- a/atlasaction/testdata/bitbucket/schema-push.txtar
+++ b/atlasaction/testdata/bitbucket/schema-push.txtar
@@ -11,6 +11,7 @@ atlas-action schema/push
 env ATLAS_INPUT_TAG=98765
 atlas-action schema/push
 
+exec cat .atlas-action/outputs.sh
 output outputs.sh
 -- outputs.sh --
 export ATLAS_OUTPUT_SCHEMA_PUSH_LINK="https://test.atlas.ariga/schemas/12345"