18 Oct 2025
Bitcoin has officially confirmed a break below a critical daily support level, repeating historical patterns, signaling a likely lack in bullish momentum and a pullback over the next one to two months. However, a new bullish divergence on the 4-hour chart suggests a potential short-term bullish relief or sideways consolidation in the immediate future.
Bitcoin has officially confirmed a break below a significant ascending line of support, closing around $108,000, which indicates a negative price structure over the next couple of weeks. This break, coupled with a reconfirmed massive bearish divergence on the weekly time frame, suggests a more bearish outlook than bullish, with a likely lack in bullish momentum and a pullback expected over the next one to two months.
A new bullish divergence has been officially confirmed on the 4-hour Bitcoin price chart, displaying a clear lower low in price candle closes and higher lows in the RSI. This divergence commonly leads to either sideways consolidation or a short-term bullish relief, indicating a temporary break from bearish price action is very likely over the next couple of days, without necessarily implying a massive bullish reversal.
A new Gridbot trading strategy has been implemented, which automatically buys Bitcoin on dips (with buy orders ranging down to $70,000) and takes profits on short-term bounces or recoveries by selling Bitcoin. This strategy is designed to be profitable even if the bearish price action timeline changes or if a further pullback occurs, and it only incurs losses if the price dumps below $70,000 without any significant recovery.
The Bitcoin dominance is continuing a bullish relief, which generally leads to altcoins underperforming Bitcoin in the immediate short term. Significant resistance for Bitcoin dominance is expected between 60.5% to 61%, where a potential rejection could then allow altcoins to perform better against Bitcoin.
Ethereum is attempting a break below a crucial support area between $3.9K to $4.1K on the 3-day time frame, and a confirmed close below $3.9K would be a very bearish signal, likely leading to a move towards $3,000 or lower in the coming weeks. However, a bullish divergence remains technically confirmed on the daily time frame, suggesting a possible sideways consolidation with volatility over the next few days to a week. Key resistance levels are identified at $3,950, $4,060-$4.1K, and $4,250-$4,280, with a double bottom pattern potentially confirming above $4,280 for a target of $4.7K.
Solana is currently trading below an important resistance area of $190-$200 and has reached support around $170-$180 based on candle closes and wicks. A break below $170 would expose further support at $158 and then $143-$146. Resistance levels are at $190-$200, $208, and $218. A potential double bottom pattern could form if a breakout above $209-$210 is confirmed, leading to a bullish price target above current highs, but currently no bullish divergence is observed.
XRP continues to exhibit a massive bearish divergence on the weekly time frame and is attempting a break below its golden pocket support area, which lies between $2.30 and $2.40. A confirmed daily candle close below $2.30, particularly if that level acts as new resistance, would set the next major downside target at approximately $2.05. If XRP holds this support and bounces, resistance is expected between $2.60 and $2.70.
Chainlink remains within a larger bearish price structure of lower highs and lower lows but has recently bounced from its golden pocket support area, approximately $15.20 to $15.70. A continued bounce could face resistance at $17.20-$17.50, and major resistance between $19.50 to $20. Short-term relief or a slight bounce is expected, especially if Bitcoin demonstrates similar bullish relief or consolidation.
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Overall, once again, this is all pointing towards things potentially looking more bearish than bullish.
| Asset | Timeframe | Outlook | Key Insight | Expected Action | Key Level |
|---|---|---|---|---|---|
| Bitcoin | Weekly/Daily | Bearish | Confirmed daily close below crucial support (~$108K); reconfirmed weekly bearish divergence. | Lack of bullish momentum, likely pullback over 1-2 months. | Resistance at ~110K (previous support). |
| Bitcoin | 4-Hour | Bullish Relief | New bullish divergence confirmed (lower price lows, higher RSI lows). | Short-term bullish relief or sideways consolidation over next couple of days. | Liquidity draw towards 116K possible. |
| Bitcoin Dominance | Daily | Bullish Relief | Continuing bullish divergence; altcoins underperforming currently. | Approaching strong resistance at 60.5%-61% where rejection could benefit altcoins. | Resistance: 60.5% to 61%. |
| Ethereum | 3-Day/Daily | Bearish if support fails, Sideways otherwise | Attempting break below crucial support ($3.9K-$4.1K); daily bullish divergence. | If support fails, move towards $3,000. Otherwise, short-term sideways consolidation. | Support: $3,750; Resistances: $3,950, $4,060-$4.1K, $4,250-$4,280. |
| Solana | 2-Day/4-Hour | Consolidation | Trading below $190-$200 resistance, finding support at $170-$180. | Possible double bottom if break above $209-$210 confirms, targeting above highs. | Support: $170-$180; Resistances: $190-$200, $208, $218. |
| XRP | Weekly/Daily | Bearish if support fails | Massive weekly bearish divergence; attempting break below golden pocket support ($2.30-$2.40). | If daily close below $2.30 confirms, next target is ~$2.05. | Support: $2.30-$2.40; Resistance: $2.60-$2.70. |
| Chainlink | Daily | Bearish trend, short-term relief | Within bearish structure, bounced from golden pocket support ($15.20-$15.70). | Likely slight bounce/relief in short term, but within larger bearish trend. | Support: $15.20-$15.70; Resistances: $17.20-$17.50, $19.50-$20. |
