16 Oct 2025
Bitcoin continues to play out a short-term bullish divergence, and a long position is maintained, but a new warning signal is flashing. Ethereum, Solana, XRP, and Chainlink are retesting crucial levels of support or resistance, with altcoins generally expected to underperform Bitcoin due to its strengthening dominance.
Bitcoin is currently playing out a short-term bullish divergence, and a long position is maintained. A potential bearish divergence is forming in the 4-hour RSI if higher price highs are confirmed alongside lower RSI highs, which serves as a warning signal to watch for, though it is not yet confirmed or completed. The price hit overbought in the 4-hour RSI, leading to an expected cool-off that has already occurred.
On weekly and 3-day charts, the super trend indicator remains green, indicating a larger bull market, but a massive bearish divergence is technically active. Larger time frames continue to show a lack of momentum, with the price trading in a sideways range between approximately 107,000 (support) and 117,000 (resistance).
Short-term resistance levels are around 114,000-112,000, with a move towards 117,000 expected if that level is broken. Support is anticipated around 113,000, with further support at 110,000 if that level fails. Major liquidity targets to the upside are approximately 115,000, 116,800-117,000, and 118,600, while a major area of liquidity to the downside sits just above 108,000.
Bitcoin dominance is actively playing out a short-term bullish divergence, indicating a likely slight bullish relief for Bitcoin dominance in the coming days, possibly weeks. This relief suggests that many altcoins will likely underperform Bitcoin, lagging behind its bullish moves rather than experiencing massive crashes.
Ethereum is holding above its 3-day support between 3,900-4,100 after perfectly rejecting from resistance at 4,250-4,280. The price is currently retesting a crucial support area between 4,060-4,100; a confirmed break back below 4,060 would likely lead to a retracement towards 3,900 or lower. Ethereum is expected to perform similarly to Bitcoin but with a slight underperformance due to Bitcoin's strengthening dominance.
Solana continues to bounce from its support area between 190-200 and remains within a larger bullish trend, forming higher lows and higher highs. A previous 12-hour bearish divergence has played out, followed by a bullish relief after hitting extremely oversold RSI levels. This bullish relief for Solana may slow down due to Bitcoin's bullish dominance, indicating a loss of bullish momentum rather than a definitive bearish turn.
A massive bearish divergence on the weekly XRP chart remains active, warned about months prior. On the daily chart, XRP is holding above an important support area between $2.70-$2.80. Significant resistance is expected between $3.10-$3.15, with short-term resistance at $2.93, a level from which the price recently rejected. XRP continues to respect these key support and resistance levels.
Chainlink is approaching a crucial resistance area between $22-$22.30, a zone where previous significant support has flipped into new resistance. Support is expected between $19-$20, a level from which the price previously bounced. Similar to other altcoins, Chainlink is expected to follow Bitcoin's price action but likely underperform due to the slight bullish relief in Bitcoin dominance.
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Overall, the market remains more bullish than bearish in the shorter term, driven by an active bullish divergence, but larger time frames continue to exhibit a lack of momentum.
| Asset | Key Metric/Level | Status/Outlook | Insight |
|---|---|---|---|
| Bitcoin (BTC) | Short-term Bullish Divergence | Active; long position maintained | Driving short-term bullish price action. |
| Bitcoin (BTC) | Potential Bearish Divergence (4-hour RSI) | Forming but not confirmed/completed | A warning signal if higher price highs coincide with lower RSI highs. |
| Bitcoin (BTC) | Larger Time Frame Momentum | Lacking / Relatively Flat | Suggests range-bound movement (107K support - 117K resistance) in the broader context. |
| Bitcoin Dominance | Short-term Bullish Divergence | Actively playing out | Implies altcoins will likely underperform Bitcoin, rather than crashing. |
| Ethereum (ETH) | Resistance: 4250-4280 / Support: 4060-4100 | Rejected from resistance, retesting crucial support | Break below 4060 could lead to retracement towards 3900 or lower; expected to underperform BTC. |
| Solana (SOL) | Support: 190-200 / 12-hour RSI | Bouncing from support, bullish relief continuing after oversold RSI | Bullish relief may slow due to BTC dominance, losing momentum but not necessarily bearish. |
| XRP | Weekly Bearish Divergence / Support: $2.70-$2.80 | Massive bearish divergence active, holding daily support | Price respects key support/resistance levels; significant resistance at $3.10-$3.15, short-term at $2.93. |
| Chainlink (LINK) | Resistance: $22-$22.30 / Support: $19-$20 | Approaching resistance, bounced from support | Expected to follow Bitcoin but likely underperform due to BTC dominance. |
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