16 Oct 2025
Bitcoin has officially reached a new all-time record high, establishing the highest price in history, while immediate short-term warning signals have concurrently been confirmed. This prompts an adjustment in trading strategies, including taking profits and adjusting stop losses, while maintaining an overall long position, as Ethereum and Solana also display new short-term warning signs.
Bitcoin has officially achieved a new all-time record high, surpassing its previous peak of approximately 124,000 to reach above 125,000. This milestone was expected after Bitcoin broke above the significant resistance level around 117K-118K.
A new short-term bearish divergence has been confirmed on the 4-hour Bitcoin price chart, characterized by higher highs in price indices and lower highs in the RSI. Additionally, the daily Bitcoin RSI is entering overbought territory, suggesting a potential for a slight cool-off or pullback—either sideways consolidation or a minor dip—over the next day to week, which is not indicative of the end of the larger bullish movement.
The weekly Bitcoin price chart's super trendy indicator remains green, signaling a larger bull market. A bullish crossover has been officially confirmed on the 3-day Bitcoin MACD, indicating a significant increase in bullish momentum after a period of relatively flat market movement.
The technical price target for the W-pattern or double bottom pattern breakout is projected to be between 126,000 and 127,000. The current price action has approached this target very closely.
A portion of profits has been taken from a Bitcoin long position due to the new all-time high, proximity to the price target, and observed short-term resistance and bearish divergence. The long position has been reduced in size from approximately 200,000 USD to 30,000 USD, while still securing over 9,000 USD in realized profits and around 4,000 USD in unrealized profits. The stop loss has also been adjusted further into profits to mitigate downside risk.
A small amount of liquidity is building between 120.9K and 121.4K (around 121,000) on the 3-day chart. Bitcoin's price tends to move towards concentrated liquidity, which, combined with the short-term bearish divergence, suggests a likely slight dip to capture this liquidity.
Bitcoin dominance continues to exhibit a short-term bullish divergence, implying that many major altcoins are likely to slightly underperform Bitcoin in the immediate future.
Ethereum is holding above a crucial support area between 3.9K and 4.1K on the 3-day timeframe. However, a small bearish divergence has formed on the 8-hour chart, suggesting a potential retest of the support between 4450 and 4.5K. Key resistance levels are at 4.6K and roughly 4.7K, with the next significant support if current levels fail found at 4250 to 4280.
Solana is struggling around the Fibonacci level of $230-$232, encountering resistance. A confirmed breakout above this level would target 250-260, potentially reaching $280-$300. Support levels are at 215-216, with major support at 190-200. A new short-term bearish divergence on the 4-hour chart indicates expected weakness and a lack of bullish momentum in the coming days, possibly leading to choppy sideways action or a slight pullback.
XRP continues to display a massive bearish divergence on the weekly timeframe, indicating ongoing weakness and a lack of bullish momentum since July. The price remains within a sideways range, with established support between 2.70-280 and 293-294, and resistance between 310-315, with significant resistance at 330-335. Bitcoin's expected short-term cool-off and the bullish relief in Bitcoin dominance are likely to keep XRP in this sideways trading pattern.
Chainlink is currently struggling around the $22 level, facing short-term resistance near $23 and support at $22. A breakout above $23 could target the next major resistance at $25. The larger price structure for Chainlink appears bearish, forming lower highs and lower lows, though a continued strong bullish move in Bitcoin could provide some assistance.
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Insights are provided on various trading strategies, including long/short positions for profiting from directional price movements and gridbot strategies for passively capitalizing on choppy, sideways price action.
New all-time record highs mean basically no one is in a loss right now.
| asset | insight | detail |
|---|---|---|
| Bitcoin | New All-Time High Achieved | Bitcoin officially hit a new record high above 125K, surpassing the previous high of ~124K, confirming predictions after breaking significant resistance at 117K-118K. |
| Bitcoin | Short-Term Caution Signals | A 4-hour bearish divergence and daily RSI nearing overbought suggest a likely short-term cool-off, sideways consolidation, or slight pullback in the coming days, not signaling the end of the larger bullish trend. |
| Bitcoin | Strong Long-Term Momentum | The 3-day MACD shows a bullish crossover and the weekly super trendy indicator remains green, indicating increasing bullish momentum for a larger bull market. |
| Bitcoin | Strategic Profit-Taking | Profits were taken from a long position due to new all-time highs and warning signals, while maintaining an overall long stance with an adjusted stop-loss to secure gains. |
| Bitcoin | Liquidation-Driven Dip Potential | Liquidity building around 121K, combined with the short-term bearish divergence, points to a potential slight dip to capture this liquidity. |
| Altcoins | Underperformance vs. Bitcoin | Bitcoin dominance is playing out a short-term bullish divergence, suggesting that many major altcoins will likely underperform Bitcoin in the immediate future. |
| Ethereum | Crucial Support Retest Expected | A small 8-hour bearish divergence indicates Ethereum may retest its crucial support area between 4450-4.5K, which it has been holding strong previously. |
| Solana | Short-Term Weakness Confirmed | A new 4-hour bearish divergence signals expected weakness, choppy sideways action, or a slight pullback in the coming days, while price struggles at $230-$232 resistance. |
| XRP | Extended Sideways Trading | A persistent weekly bearish divergence, alongside Bitcoin's short-term cool-off, will likely keep XRP within its defined sideways range (support 2.70-280, resistance 310-315). |
| Chainlink | Struggling at Resistance | Chainlink struggles around the $22-$23 level, with resistance at $23. The larger price structure appears bearish, though Bitcoin's bullish momentum could offer minor support. |
