21 Oct 2025
Bitcoin is currently experiencing a price trap, rejecting from a crucial resistance line after failing to confirm a breakout, mirroring previous price action. Despite this short-term weakness and a larger bearish divergence indicating a likely continued pullback over weeks or months, a specific trading strategy aims to profit from market fluctuations, alongside analyses of Ethereum, Solana, XRP, and Chainlink.
Bitcoin has encountered a price trap, rejecting from a crucial ascending resistance line around $110,000 after an attempted breakout failed to confirm with a daily candle close. This rejection is similar to price action observed in February-March, indicating potential for a continued pullback in the short term.
The importance of understanding different time frames is emphasized, as smaller time frame bullish signals (days/weeks) can occur within larger time frame bearish trends (weeks/months). A lack of bullish momentum and weakness are expected over the next few weeks to a month due to a massive weekly bearish divergence.
A confirmed breakout above the $110,000 resistance line requires at least a daily candle close, ideally multiple closes, holding above it as new support. Such a breakout would signal a short-term bullish move for a few days to a week but would likely remain within a larger sideways consolidation, not negating the broader bearish divergence on weekly charts.
Bitcoin's continued struggle and rejection from the resistance line, especially if the current daily candle confirms red and breaks previous lows, suggests a repeat of past pullbacks. If rejection persists in the next few days, a further pullback in the coming weeks becomes highly probable.
On the 4-hour timeframe, Bitcoin perfectly rejected resistance between $111.7K and $112K. While a short-term bullish divergence existed, its duration is typically only a few days, and it is largely considered over due to the current rejection, though not technically invalidated without a strong bounce.
A profitable grid bot trading strategy is currently employed, designed to make profits irrespective of continued pullbacks or recoveries, as long as Bitcoin's price avoids a straight line drop below $43,000 (liquidation price) or $70,000 (lower grid limit). This automated strategy buys Bitcoin at lower prices and places sell orders just above, taking profit on bounces.
The grid bot strategy is implemented on Pionex, which offers significant bonuses for new users who sign up through specific links, including USDT bonuses for KYC completion and deposits. These bonuses are only available when using the provided referral links.
Significant liquidity exists above Bitcoin's current price at around $112K and $116K. While a move towards these levels is possible, strong resistance points at $111.7K and $115.8K to $116K must first be overcome.
Another exchange, Two Bit (no KYC), is recommended for long and short positions, offering substantial bonuses like up to 10,000 USDT in trial funds and 8,000 USDT in withdrawable stablecoins for new accounts and trades made via referral links, including a free 30 USDT bonus and 1 month free VIP3 upgrade without any deposits.
Bitcoin dominance is expected to see at least a slight bullish relief due to an active bullish divergence, meaning major altcoins are likely to underperform Bitcoin somewhat. A potential resistance for Bitcoin dominance exists between 60.5% to 61%, where a rejection could lead to altcoins outperforming Bitcoin.
Ethereum is near confirming a 3-day candle close below critical support between $3.9K and $4.1K, indicating a weakening price structure with lower lows and lower highs. A short-term bullish divergence on the daily timeframe remains active but could invalidate if the RSI breaks below previous lows. On the 8-hour timeframe, Ethereum rejected resistance between $4060 and $4.1K and is now testing support levels at $3850-$3860, with the next significant support at $3720-$3760.
Solana is rejecting from resistance between $190 and $200. Short-term support is expected around $170 to $175. The 8-hour RSI for Solana is close to breaking its ascending support line, which would invalidate its short-term bullish divergence.
XRP continues to exhibit a massive bearish divergence on the weekly timeframe, suggesting a major pullback over the coming months. A short-term bullish divergence is still active, potentially leading to sideways consolidation. Key support levels are at $230-$240, then $220, and significant support at $25. Resistance is observed near $260.
Chainlink is in a bearish trend with lower highs and lower lows, similar to XRP. A short-term bullish divergence provides a slight bullish relief or choppy sideways action, but does not indicate a massive bullish trend reversal. Short-term support is around $1750, with further support at $1520-$1570. Resistance is strong between $1950 and $20.
The larger time frames are more important than the smaller time frames.
| Asset | Outlook | KeyLevels | Details |
|---|---|---|---|
| Bitcoin (BTC) | Short-term bearish, Long-term cautious | Resistance: ~$110K, $111.7K-$112K, $115.8K-$116K | Rejected crucial resistance; weekly bearish divergence suggests continued weakness over weeks/months. Daily candle close above $110K needed for short-term bullish signal. |
| Bitcoin Trading Strategy | Profit-making through fluctuations | Grid Range: $70K (low end), Liquidation: ~$43K | Automated grid bot on Pionex to profit from market movements, buying low and selling high within a defined range, resilient to pullbacks above liquidation. |
| Ethereum (ETH) | Bearish, weakening structure | Critical Support: $3.9K-$4.1K; Support: $3850-$3860, $3720-$3760; Resistance: $4060-$4.1K, $4250-$4280. | Close to breaking critical 3-day support, showing lower lows and highs. Short-term bullish divergence at risk of invalidation. |
| Solana (SOL) | Bearish, rejection from resistance | Resistance: $190-$200; Support: $170-$175. | Rejected from resistance. 8-hour RSI nearing breakdown of support, threatening invalidation of bullish divergence. |
| XRP | Long-term bearish, short-term sideways/relief | Support: $230-$240, $220, $25; Resistance: ~$260. | Massive weekly bearish divergence implies major pullback. Short-term bullish divergence could lead to sideways consolidation, contingent on Bitcoin's performance. |
| Chainlink (LINK) | Bearish trend, short-term relief | Support: ~$1750, $1520-$1570; Resistance: $1950-$20. | In a bearish trend with lower highs and lows. Short-term bullish divergence offers slight relief but does not signal a major trend reversal. |
| Bitcoin Dominance | Bullish relief for BTC, altcoin underperformance | Resistance: 60.5%-61% | Bullish divergence suggests altcoins will generally underperform Bitcoin. A rejection from the 60.5%-61% resistance could reverse this trend. |
