16 Oct 2025
Bitcoin demonstrates short-term bullish divergence, nearing crucial resistance at $117,000-$118,000, with a confirmed breakout potentially leading to new all-time highs and triggering significant liquidity events. Meanwhile, Ethereum, Solana, XRP, and Chainlink exhibit individual breakout attempts and support bounces, while Bitcoin's historical October performance and dominance patterns influence broader altcoin movements.
Bitcoin is currently playing out a short-term bullish divergence, nearing a crucial resistance level, while Ethereum has officially broken out above a key area, and XRP is bouncing from significant support.
The weekly Bitcoin price chart's Super Trend indicator remains in the green, signaling a larger bull market, although a massive bearish divergence technically remains active. On the 3-day Bitcoin price chart, a potential bullish crossover is approaching, but a significant amount of momentum in either direction is not yet evident, indicating a somewhat neutral larger market momentum for now.
Bitcoin is testing a crucial short-term resistance level between $117,000 and $118,000, a zone that has previously resulted in multiple significant rejections. Confirmation of a breakout requires at least a daily candle close, ideally above $118,000, and sustained holding above this level to ensure the breakout's validity.
A confirmed breakout above $118,000 sets the next short-term price target at approximately $120,000, which could act as strong resistance, followed by the all-time high close to $124,000. Such a strong breakout would also confirm a bullish W pattern or double bottom, projecting a price target for new all-time highs between $127,000 and $128,000, representing over an 8% move without leverage.
The price continues to play out a bullish divergence and a short squeeze, accelerating bullish price action. While the 4-hour Bitcoin RSI is currently overbought, potentially leading to a slight cool-off, sideways consolidation, or minor pullback over the next one to two days, no bearish divergence is forming, which is positive for Bitcoin.
Significant liquidity is accumulating above Bitcoin's price, particularly around $118,000 to $119,000, which historically tends to draw the price to liquidate short positions and contribute to further upward movement. Additionally, October is historically the most bullish month for Bitcoin, with green performance in almost every year since 2013, adding a seasonal bullish catalyst.
A long Bitcoin position was initiated around $110,000, with current unrealized profits around $6,000 USD and total profits exceeding $9,000 USD within approximately three days. The stop-loss remains in profits above the entry, and there is a potential to take a small amount of profits if resistance at current levels persists, while the overall long position is maintained due to ongoing bullish catalysts.
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Despite a slight recent pullback, a bullish divergence in Bitcoin dominance remains active, suggesting a bullish relief in the coming days to one or two weeks. This implies that most altcoins will likely slightly underperform Bitcoin or perform similarly, rather than entering a major altcoin season or experiencing massive crashes.
Ethereum is bouncing from a significant support area between $3,900 and $4,100, and an 8-hour candle close above a short-term resistance area has been confirmed, which now acts as new support between $4,250 and $4,280. The next potential resistance target is between $4,470 and $4,500, especially if Bitcoin continues its bullish move.
Solana technically remains within a longer-term bullish price structure, forming higher lows and higher highs on the 2-day chart, indicating that recent movements may be a short-term pullback within a larger bullish trend. It has bounced and held a significant support area between $190 and $200, and is now attempting a breakout above resistance at $215-$216, with subsequent targets at $230 and $250-$260. The previous bearish divergence is invalidated, and the RSI shows a gathering short-term bullish trend.
The major bearish divergence for XRP, previously warned about months ago, has played out. Currently, XRP is holding and bouncing from a crucial support area between $2.70 and $2.80. Immediate resistance is around $2.93-$2.94, followed by $3, then $3.10-$3.15, and higher resistance at $3.30-$3.35. XRP's price action is significantly influenced by Bitcoin's performance and Bitcoin dominance.
Chainlink is attempting a breakout above a crucial level between $22 and $22.30, which has previously served as both important support and short-term resistance. Confirmation with a daily candle close above this area would be very bullish for Chainlink's short-term price, potentially leading to moves towards $23.90-$24 and possibly above $25 to $25.40. Chainlink's performance is also influenced by Bitcoin's ongoing bullish momentum.
The crypto market exhibits strong short-term bullish catalysts, primarily driven by Bitcoin's potential breakout towards all-time highs, which is expected to positively influence major altcoins. However, some altcoins may slightly underperform Bitcoin due to an expected bullish relief in Bitcoin dominance.
October, historically speaking, is pretty much hands down the most bullish month for Bitcoin.
| Crypto Asset | Key Event/Status | Immediate Outlook | Longer-Term Significance |
|---|---|---|---|
| Bitcoin | Testing crucial resistance at $117K-$118K; 4-hour RSI overbought; Significant liquidity above $118K-$119K; Historically bullish October. | Potential cool-off, then a strong breakout above $118K leading to $120K, then all-time highs (~$124K). | Breakout confirms bullish W-pattern with target $127K-$128K, highly likely to reach new all-time highs. |
| Ethereum | Bouncing from $3.9K-$4.1K support; Confirmed 8-hour candle close above short-term resistance. | Continued bullish move, likely another $150-$200 higher, targeting $4470-$4.5K resistance. | Bullish price structure points to continued upward movement, especially with Bitcoin's breakout. |
| Solana | Bouncing from $190-$200 support; Attempting breakout above $215-$216 resistance; Bearish divergence invalidated. | Short-term bullish relief continuing, targeting $230, then $250-$260. | Maintaining longer-term bullish price structure with higher lows and higher highs. |
| XRP | Holding crucial support at $2.70-$2.80; Previously played out major bearish divergence. | Attempting to clear immediate resistance at $2.93-$2.94, then $3, $3.10-$3.15. | Bullish price action expected if Bitcoin continues its bullish move, but may slightly underperform due to Bitcoin dominance. |
| Chainlink | Attempting breakout above crucial resistance at $22-$22.30. | Confirmation of breakout leads to bullish move towards $23.90-$24, possibly $25.20-$25.40. | Influenced by Bitcoin's bullish momentum, a confirmed breakout is very bullish in the short term. |
| Bitcoin Dominance | Bullish divergence still active despite slight pullback. | Expect a bullish relief over the next few days to a week. | Altcoins will likely slightly underperform Bitcoin or perform similarly, not a major altcoin season. |
