5 Nov 2025
Bitcoin exhibits massive warning signals, confirming a new bearish pattern with immediate short-term price targets, while Ethereum and other altcoins face similar bearish structures and crucial support tests. A hybrid trading strategy, combining a gridbot with a short position, effectively hedges against downside risk and aims to profit regardless of market direction.
Bitcoin continues to play out a massive warning signal on larger timeframes, confirming a new bearish price pattern with an immediate short-term target, while Ethereum tests a crucial support area and XRP breaks below a key support level, indicating widespread market weakness.
The Super Trend indicator on the weekly Bitcoin chart remains in the green, signaling a larger bull market, but it is very close to flipping red for the first time since the 2022 bear market if a weekly candle closes below approximately $96,000.
During the multi-year bull market starting in early 2023, major corrections occurred where the price came close to or temporarily broke below the Super Trend indicator (e.g., August 2024), but a weekly candle close below it was never confirmed, preventing a flip to red and indicating previous downturns were not the end of the bull market.
A new bearish divergence has reconfirmed with Bitcoin's latest all-time high and a new lower high in the weekly RSI, indicating a high likelihood of weakness, lacking bullish momentum, and expecting choppy sideways price action or a significant pullback over the next few weeks to months.
Bitcoin's price continues its perfect rejection from strong resistance just under $111,000, pulling back towards previous lows.
After breaking below $106,000-$107,000, Bitcoin is moving towards an initial target of roughly $100,000, with subsequent support levels at around $97,000, and then $93,000-$94,000.
The non-stop pullback over the last 1 to 2 days, characterized by minimal bounces and mostly candle body, suggests a massive player or group of Bitcoin whales are offloading a large amount of Bitcoin.
A head and shoulders pattern is now confirmed and active on the 6-hour Bitcoin chart, setting a technical price target of around $99,000 to $100,000.
The speaker employs a gridbot trading strategy that places buy and sell orders around Bitcoin's price, continuously buying Bitcoin as it drops and selling it on bounces to secure grid profits. During a straight line dump without bounces, this strategy can result in an unrealized loss due to held Bitcoin decreasing in value.
A small short position on Bitcoin is opened as a hedge to offset the unrealized loss from the gridbot strategy during market downturns, creating a relatively delta-neutral position where the short position gains as the gridbot's unrealized value decreases.
This hybrid strategy, combining a futures gridbot with a short position, protects against downside risk, allowing profit from continued dumps via the short, while the gridbot profits from any bounces or sideways volatility.
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The Bitcoin liquidation heat map shows a major level of liquidity below the current price at around $89,000, indicating a potential significant target towards the downside if current supports fail.
Bitcoin dominance is struggling to play out a bullish divergence and faces strong resistance between 60.5% and 61%, suggesting altcoins might hold up relatively well against Bitcoin if this resistance holds. However, a confirmed breakout above 61% would be extremely bullish for Bitcoin dominance and extremely bearish for the altcoin market.
Ethereum exhibits a massive bearish price structure on the 3-day timeframe, effectively ending its bullish trend and forming a larger bearish trend expected to last for weeks to months, heading towards major support points.
Ethereum is currently testing crucial support between $3350 and $3450; a daily candle close below $3350 would likely lead to the next major support and price target of $2700 to $2850.
Solana displays a similar bearish situation, continuing a rejection from resistance between $190 and $200, breaking below previous supports at $170 and $157. A continued drop is expected towards $143-$146, and potentially $135 or $125 if these supports fail.
XRP continues to play out a massive bearish divergence, breaking below important short-term support between $230 and $240, with the next price target and major support at around $205. A possible new bullish divergence is forming but remains unconfirmed, potentially indicating only short-term relief within a larger bearish trend.
Chainlink is continuing its larger bearish trend, breaking below support at $16.50 and the golden pocket area of support ($15.20-$15.70). The next major support and price target towards the downside is approximately $13.30-$13.40, with the broken supports now expected to act as resistance on any bounce.
Crypto traders can profit during market dumps by using short positions, and from choppy sideways action using grid trading strategies, leveraging these tools to make money regardless of market direction.
By using this trading strategy right now, one is fully protected in the market and also set up to make profits really no matter what the price does.
| Asset | Key Indicator | Status/Observation | Implication/Condition | Key Level/Pattern | Key Strategy |
|---|---|---|---|---|---|
| Bitcoin | Weekly Super Trend | Green, but near flip | Close below ~$96,000 would flip to red, signaling bear market. | ||
| Bitcoin | Weekly RSI Divergence | Reconfirmed Bearish Divergence | Expect significant weakness, lacking bullish momentum, weeks to months pullback/rangebound. | ||
| Bitcoin | Confirmed Head & Shoulders | Immediate target ~$100,000, then ~$97,000, ~$93-94,000, with major liquidity at ~$89,000. | Short-Term Price Targets | ||
| Ethereum | 3-Day Price Structure | Massive Bearish Structure | Bullish trend ended, likely extended bearish period. Crucial support $3350-$3450, next target ~$2700-2850 if broken. | ||
| Overall Market | Gridbot + Short Position | Protects against downside (short), profits from pumps/volatility (gridbot), enabling profit regardless of market direction. | Hybrid Trading Strategy | ||
| Altcoins (via BTC Dominance) | Bitcoin Dominance | Struggling at 60.5%-61% Resistance | Altcoins holding relatively better if resistance holds. Breakout would be extremely bearish for altcoins, performing much worse than Bitcoin. |
