16 Oct 2025
Bitcoin is nearing a short-term RSI breakout, potentially invalidating a bearish divergence, while massive institutional inflows, particularly from BlackRock, indicate strong underlying buying despite recent price drops. Simultaneously, Ethereum is bouncing off crucial support, Solana is poised for an RSI breakout, and Bitcoin dominance suggests altcoins may continue to underperform.
A breakout in the short-term Bitcoin Relative Strength Index (RSI) is imminent, potentially invalidating a bearish divergence and signaling a bullish move with increasing liquidity towards the upside.
BlackRock's Bitcoin ETF has been the primary buyer, registering massive inflows that totaled nearly $900 million on Tuesday and over $1.2 billion on Monday, amounting to over $2 billion in two days, contrasting with retail panic selling.
The weekly Bitcoin price chart's Super Trend indicator remains green, confirming a larger bull market, and the latest all-time high breakout (including weekly candle closes) has technically invalidated a previous bearish divergence.
A bullish crossover confirmed in the 3-day Bitcoin Moving Average Convergence Divergence (MACD) approximately a week ago signals short-to-midterm bullish momentum, historically followed by bullish price action for several weeks.
Bitcoin successfully reached its technical price target range of 126K to 127K after hitting an earlier target of 117K, experiencing a perfect rejection from the higher target.
A short-term pullback helped reset the daily Bitcoin RSI from an overbought state, a normal cool-off action that does not necessarily signify the end of the bullish trend but a temporary setback.
Most short-term liquidity is building above the current Bitcoin price, specifically around 126.3K, suggesting a potential upward draw to liquidate short positions.
The trader maintains a Bitcoin long position, having secured approximately $9,600 USD in realized profits within a week by taking partial profits at resistance levels and maintaining a stop loss in a profit-securing position.
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A confirmed bullish divergence on the 3-day Bitcoin dominance chart, active for 2-3 weeks, suggests that many altcoins will likely underperform or perform similarly to Bitcoin, making a widespread altcoin season unlikely in the immediate future.
Ethereum is currently trading within a sideways range, with support between 3.9K and 4.1K and resistance between 4.8K and 4.9K, while a short-term bearish divergence on the 8-hour chart persists despite current support holding the price.
Solana is retesting resistance near $230-$233, with further resistance at $250, while strong support exists at $216 and $190-$200; a potential RSI breakout on the 4-hour chart could invalidate a bearish divergence and indicate a bullish relief.
XRP remains within a neutral, choppy sideways range on the daily chart, bounded by support at $2.70-$2.80 and resistance at $3.10-$3.15, and its weekly chart still shows an un-invalidated bearish divergence; a grid bot strategy is recommended for this price action.
Chainlink is consolidating around $22-$23, exhibiting lower highs and lower lows on the daily chart, signaling significant underperformance against Bitcoin, which is expected during a bullish Bitcoin dominance trend.
While many retail investors panic sell during minor drops, these downturns could serve as bear traps before significant bullish bounces, particularly amidst substantial institutional buying.
| asset | indicator | status |
|---|---|---|
| Bitcoin | Short-term RSI | Nearing breakout, potentially invalidating bearish divergence for a bullish signal. |
| Bitcoin | Institutional Inflows | Over $2 billion in two days, with BlackRock as the main buyer, indicating strong demand. |
| Bitcoin | Weekly Super Trend | Remains green, confirming an active larger bull market. |
| Bitcoin | 3-Day MACD | Bullish crossover confirmed, pointing to short-to-midterm bullish momentum. |
| Bitcoin | Liquidation Heat Map | Shows significant liquidity at ~126.3K, potentially drawing price up to liquidate short positions. |
| Bitcoin Dominance | 3-Day Chart | Active bullish divergence, suggesting altcoins will likely underperform Bitcoin. |
| Ethereum | 3-Day Price Range | Consolidating sideways; Support 3.9K-4.1K, Resistance 4.8K-4.9K. |
| Solana | 4-Hour RSI | Very close to a breakout, which would invalidate bearish divergence and signal bullish relief. |
| XRP | Daily Price Range | Neutral sideways movement; Support $2.70-$2.80, Resistance $3.10-$3.15. Weekly bearish divergence active. |
| Chainlink | Daily Price Structure | Exhibiting lower highs and lower lows, indicating significant underperformance against Bitcoin. |
