16 Oct 2025
Bitcoin currently exhibits a short-term bearish divergence alongside new liquidation levels, while Ethereum maintains a struggle within its established sideways price range. Other altcoins like Solana, XRP, and Chainlink also show signs of short-term cool-offs or consolidation, with underlying bullish trends potentially resuming after immediate weakness.
The super trend indicator on the weekly Bitcoin price chart remains green, signaling a larger bull market, while a major bearish divergence is still active. The 3-day Bitcoin MACD is nearing a possible bullish crossover, indicating stability in larger time frames.
Bitcoin is experiencing a short-term rejection from a crucial resistance level around $117,000. If Bitcoin confirms a daily candle close above $117,000 and holds it as support, the next targets are $120,000 and potentially $124,000. Short-term support is expected around $114.5K, with major support at $113,000.
A short-term bearish divergence on the 4-hour Bitcoin price chart, with higher highs in price and lower highs in RSI, is currently active and suggests continued short-term weakness or sideways price action. A bearish trend reversal would be confirmed if Bitcoin breaks below $114.5K and fails to recover.
New liquidity is building below Bitcoin's price at approximately $114.3K, while massive liquidity still resides above the price at around $118K to $119K. A likely scenario involves a slight dip to clear downside liquidity before potentially moving towards the massive upside liquidity.
Bitcoin and crypto funding rates are mostly sitting below neutral, which indicates a slightly more bullish sentiment than bearish in the short term. Long Bitcoin positions are maintained, implementing a strategy of taking profits at resistance levels and placing stop-losses in slight profit to protect against downside risk while preserving upside potential.
The Bitcoin dominance chart shows a slight relief and neutral activity in the immediate short term, still within a larger pullback. This suggests altcoins might perform similarly to or slightly underperform Bitcoin in the coming days, with potential for altcoin outperformance if the larger bearish dominance trend resumes later.
Ethereum's price is consolidating within a consistent sideways range, with support between $3.9K-$4.1K and resistance between $4.8K-$4.9K. Recent price action has tested a resistance level around $4.5K.
Current resistance for Ethereum is around $4470 to $4.5K, with developing support at $4430 to $4440. Further support levels are at $4370-$4380 and a significant area between $4250-$4280. If ETH breaks above $4.5K, resistance levels at $4550 and $4.6K-$4620 become relevant.
Solana remains in a longer-term bullish trend but is experiencing a short-term cool-off due to Bitcoin's weakness and an active bearish divergence on the 12-hour chart. This indicates a likely lack of bullish momentum or slight bearish price action in the short term.
Strong support for Solana is expected at $230, with further support at $215-$216 if that level is lost. Resistance is anticipated between $260 and $265.
XRP is still playing out a larger bearish divergence identified months ago on the weekly time frame. On the daily time frame, XRP is trading within a sideways range, showing neither strong bullish nor bearish momentum.
Significant support for XRP is found between $270-$280, with resistance between $310-$315 and additional resistance at $330-$335. A minor support level exists around $295. XRP is expected to cool off in the short term before a potential bullish relief, especially if Bitcoin sees an upward movement.
Chainlink is undergoing a significant cool-off within its larger bullish trend. It is crucial for Chainlink's price to hold above the support level at around $22 to $22.30 to prevent a larger bearish trend reversal.
Resistance for Chainlink is expected near $25 to $25.20, and also around $26.70 to $27. Losing the $22 support level would establish bearish price structure and potentially reverse the larger bullish trend.
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Effectively, this trading strategy protects downside risk while also leaving the upside potential still open.
| Asset | ShortTermOutlook | KeyResistance | KeySupport | OverallStrategy |
|---|---|---|---|---|
| Bitcoin | Active bearish divergence, short-term weakness/sideways consolidation | $117,000 (immediate), $120,000, $124,000 | $114.5K (short-term), $113,000 (major) | Maintaining long positions, taking profits at resistance, stop-loss in profit. |
| Ethereum | Sideways consolidation within a large range | $4.5K (immediate), $4.8K-$4.9K (range top) | $4.4K (immediate), $3.9K-$4.1K (range bottom) | Expect continued consolidation, watch range boundaries. |
| Solana | Short-term cool-off, lack of bullish momentum due to bearish divergence | $260-$265 | $230 (strong), $215-$216 | Expect sideways or slight bearish action before potential bullish trend continuation. |
| XRP | Sideways price range, short-term cool-off expected before potential relief | $3.10-$3.15, $3.30-$3.35 | $2.70-$2.80 (major), $2.95 (small) | Monitor major support/resistance, expect short-term weakness then potential bullish relief. |
| Chainlink | Larger cool-off within bullish trend, crucial support test | $25-$25.20, $26.70-$27 | $22-$22.30 (crucial) | Must hold crucial support at $22 to avoid a larger bearish trend reversal. |
