27 Oct 2025
Bitcoin is currently experiencing a significant upside breakout, driven by bullish divergence and a short squeeze, while the US stock market records new all-time highs. This positive macro environment is influencing crypto price charts, with Ethereum and other altcoins also showing upward momentum, despite running into short-term resistance.
The S&P 500 and NASDAQ 100 are exploding into new all-time highs, a phenomenon potentially attributed to news of a US-China trade deal agreement. Major markets exhibit high correlation, and a soaring US stock market significantly supports Bitcoin and the broader crypto market. Historically, Bitcoin's major bear markets only occur during periods of uncertainty or bearish price action in the stock market, implying that a crypto bear market is unlikely under current stock market conditions.
On the weekly time frame, the Super Trend indicator remains green, signifying a larger bull market. However, a significant bearish divergence suggests a period of pause or cool-off, indicating a current lack of strong bullish momentum that could persist for several weeks. This divergence does not signal the end of the bull market but rather a phase of sideways consolidation within the broader upward trend.
The historical fractal prediction is no longer playing out, invalidated by Bitcoin's breakout above 110.5K, which signaled a shift to a short-term bullish outlook for the coming days or weeks. On the 6-hour chart, Bitcoin broke out above 112K as predicted, advancing towards 116K where it encountered resistance. This movement is influenced by an active bullish divergence, causing short-term bullish relief. The 6-hour Bitcoin RSI reaching overbought conditions suggests a slight cool-off, with potential for continued upward movement if the US stock market sustains its performance.
A short squeeze has recently occurred, liquidating short positions and clearing liquidity that had accumulated above 114,000 and 116,000, propelling the price higher. Having reached these liquidity levels and encountering resistance near overbought conditions, Bitcoin is expected to face immediate short-term struggle before potentially resuming its bullish trend in a few days.
A futures grid bot trading strategy, consistently shared for the past week and a half, continues to generate easy passive profits by anticipating a bounce or recovery in Bitcoin's price. This strategy proves profitable whether a bounce happens immediately or after a further price drop and subsequent recovery. This strategy is available for replication on the Pinex exchange, which offers substantial bonuses for account creation and deposits.
The Bitcoin dominance chart is exhibiting a bullish divergence, suggesting a slight bullish relief in the short term as it approaches a resistance area. This indicates that, on average, major altcoins are likely to perform similarly to or slightly underperform Bitcoin in the immediate future.
Ethereum is bouncing from its support area between 3.9K to 4.1K on the 3-day time frame. The daily chart displays a bullish divergence, leading to choppy sideways price action or minor bullish relief. On the 8-hour chart, ETH rejected precisely from resistance between 4250 to 4280 after breaking above a previous resistance at 4060 to 4.1K, which could now serve as new support. A breakout from a symmetrical triangle pattern on the 4-hour chart confirmed a bullish price target of approximately 4570. Immediate resistance is at 4250-4280, with further resistance at 4450-4.5K if cleared. The pattern is invalidated if ETH falls below 3970.
Solana is nearing a breakout above its resistance zone of 190 to 200 on the 2-day chart. A confirmed breakout above 200 would target the next short-term resistance at around $229, with support anticipated at 170-175 if a rejection occurs. If the breakout is confirmed, the 190-200 range would establish itself as new support. Solana is experiencing slight bullish relief and sideways price movement, aligning with Bitcoin and Ethereum's short-term bullish trends, especially if the US stock market continues its ascent.
XRP has reached its resistance area between 260 to 270 and is currently struggling or rejecting from this level. A daily candle close above 270 could lead to a move towards 288, with a subsequent major target near 310. A shorter-term bullish divergence suggests a bullish relief or choppy sideways price action. An active inverse head and shoulders pattern, a bullish price pattern, is playing out with a target of 288. The pattern is invalidated if XRP breaks below 250.
Chainlink is exhibiting a shorter-term bullish divergence on the daily time frame and is approaching significant resistance between 19 to 20, particularly at 19.50 to 20. A confirmed breakout above 20 would serve as an extremely bullish signal, indicating the formation of a bullish price structure on the daily time frame and targeting at least $22. The active bullish divergence suggests the price will continue to press against this resistance in the coming days, consistent with the broader crypto market's short-term bullish trend or relief.
Pinex is recommended for copying the described trading strategy, offering bonuses such as 50 USDT for completing KYC2, 100 USDT for a 100 USDT deposit, and 1,000 USDT for a 10,000 USDT deposit via specific referral links. TwoBit is also suggested for long/short positions, operating as a no-KYC exchange. It provides trial fund bonuses up to 10,000 USDT, 8,000 USDT in withdrawable stablecoins for depositing and trading, and a free 30 USDT trial fund plus a one-month VIP3 upgrade simply for creating an account through its specific link.
Bitcoin has never experienced a major bear market while the US stock market is soaring into all-time highs, indicating a strong positive correlation between macro market performance and crypto health.
| insight | description | marketImplication |
|---|---|---|
| US Stock Market Correlation | S&P 500 and NASDAQ 100 are at new all-time highs, linked to a potential US-China trade deal. | This positive macro environment strongly supports Bitcoin and the broader crypto market, historically preventing major crypto bear markets during stock market surges. |
| Bitcoin Market Cycle Status | The weekly Super Trend indicates a larger bull market, but a massive bearish divergence suggests a cool-off or sideways consolidation. | Expect sideways movement or minor pullbacks within the larger bull trend; the bearish divergence does not signal the end of the bull market but a lack of immediate strong bullish momentum on larger timeframes. |
| Bitcoin Short-Term Breakout | Bitcoin broke out above 110.5K, invalidating a bearish fractal, and moved from 112K towards 116K where it found resistance. | This breakout indicates short-term bullish price action for days to weeks. Immediate resistance is at 116K, with a potential for a slight cool-off due to overbought RSI and recent short squeeze before possibly continuing higher. |
| Ethereum Bullish Price Target | Ethereum confirmed a breakout from a symmetrical triangle pattern on the 4-hour chart. | This breakout activates a bullish price target of approximately 4570. Immediate resistance is between 4250-4280; clearing this targets 4450-4.5K. Invalidation occurs if the price falls below 3970. |
| Effective Trading Strategy | A futures grid bot strategy consistently generated passive profits from Bitcoin's bounces and recoveries, irrespective of immediate pullbacks. | This strategy is presented as a reliable method to profit from market volatility and can be replicated on the Pinex exchange, which offers signup and deposit bonuses. |
| Altcoin Price Action and Targets | Solana is nearing a breakout above 190-200. XRP faces strong resistance at 260-270 but has a bullish inverse head and shoulders target of 288. Chainlink is pressing resistance at 19-20 with bullish divergence. | Expect similar short-term bullish relief and sideways action for major altcoins. Key resistance levels must be cleared for further significant upward movement, while specific patterns like inverse head and shoulders offer clear targets. |
