16 Oct 2025
Bitcoin is experiencing a significant rejection from a precise technical price target, reconfirming a new short-term warning signal now playing out. Concurrently, Ethereum and Solana are also rejecting key resistance areas and exhibiting short-term bearish divergences, mirroring Bitcoin's immediate price action.
Spot Bitcoin ETFs experienced one of their largest net inflows on record, exceeding $1.2 billion US on Monday, with BlackRock's Bitcoin ETF alone seeing an inflow of $970 million US, indicating massive institutional buying despite current short-term market downturns.
The super trend indicator on the weekly Bitcoin chart remains green, signaling a larger bull market. While a higher high in weekly candle closes has temporarily invalidated a bearish divergence, lower highs in the RSI suggest the possibility of reconfirming this divergence later.
A bullish crossover technically remains intact on the 3-day Bitcoin chart, indicating overall bullish momentum, despite a slight recent hit to this momentum.
Bitcoin successfully reached the previously predicted price target of around 126K-127K, where it subsequently rejected and found resistance. This target has now played out and is no longer an active bullish target, but instead acts as a resistance level if the price returns to it. The hidden bullish divergence technically still affects the price, with a normal short-term pullback occurring after hitting overbought conditions.
Bitcoin is experiencing a short-term pullback or dump, primarily due to an active bearish divergence indicated by a slight higher high in price against lower highs in the 4-hour RSI. This typically leads to a short-term pullback rather than a guaranteed trend reversal, and current price action reflects cooling off from overbought conditions.
To maintain a bullish price structure on the daily timeframe, Bitcoin needs to hold above the crucial level of 117K to 118K. A daily candle close below this level would initiate bearish price structure.
Recent liquidity around 126K, slightly above the technical price target, was wiped out as the price reached that exact level. New liquidity is now building around the same level, suggesting a potential future move back towards those highs after the current bearish divergence plays out.
The 4-hour timeframe indicates a shift to a short-term bearish move, potentially continuing for one to two days until the RSI approaches oversold, which typically signals an approaching low or bounce. However, the daily timeframe still shows bullish price structure with higher lows and higher highs, demonstrating that short-term bearish moves can exist within a larger bullish trend.
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The Bitcoin dominance chart on the 3-day timeframe shows a lack of strong momentum in either direction, but a short-term bullish divergence remains active. This suggests either slight bullish or sideways price action for Bitcoin dominance, implying altcoins will likely perform similarly to Bitcoin or slightly underperform it during pullbacks.
Ethereum rejected from the predicted resistance area near 4.8K, failing to confirm a breakout with candle closes. A short-term bearish divergence is confirmed and playing out on the 8-hour chart, similar to Bitcoin. Crucial support for Ethereum is found between 3.9K to 4.1K and more immediately at 4450 to 4.5K. Failure to hold the immediate support could lead to a drop towards 4250 to 4280.
Solana also failed to break above the $230 resistance level, perfectly rejecting from it, and also shows a reconfirmed short-term bearish divergence. While the RSI is approaching oversold territory, signaling a potential slight relief bounce soon, further weakness is possible in the coming hours or day. Major support is between $190 and $200, with additional support around $215 to $216.
XRP continues to trade within a sideways range between support at $2.70-$2.80 and resistance at $3.10-$3.15, having recently rejected from the upper bound. Holding the $2.70-$2.80 support is crucial; a confirmed break below this level would constitute a massive breakdown, potentially leading to much lower prices around $2.50 or $2.
Chainlink is following the broader crypto market's short-term dump and underperforming Bitcoin due to the slight relief in Bitcoin dominance. While some support exists around $22-$23, the daily chart still exhibits lower highs and lower lows, indicating an unconfirmed reversal from bearish price structure. Further pullback could find strong support between $19 and $20.
Wall Street was pumping in literally billions of dollars at these highs right here to buy Bitcoin.
| Asset | Current Status | Key Resistance | Key Support | Technical Observation |
|---|---|---|---|---|
| Bitcoin (BTC) | Massive rejection from 126K-127K price target, short-term bearish pullback, cooling off from overbought. | ~126K-127K (previous target, now resistance) | 117K-118K (crucial for bullish structure) | Short-term bearish divergence active (4hr RSI); record ETF inflows provide long-term bullish outlook. |
| Ethereum (ETH) | Rejected from ~4.8K resistance, short-term bearish divergence confirmed. | ~4.8K (major resistance), 4680-4720 (short-term) | 3.9K-4.1K (significant), 4450-4.5K (immediate) | Following Bitcoin's short-term bearish move; potential drop to 4250-4280 if immediate support fails. |
| Solana (SOL) | Rejected from ~$230 resistance, reconfirmed short-term bearish divergence. | ~$230, ~$250 | $190-$200 (major), ~$215-$216 (potential immediate) | RSI approaching oversold, potential for short-term bounce soon after further weakness; closely follows Bitcoin. |
| XRP | Bouncing in sideways range, rejected from $3.10-$3.15 resistance. | $3.10-$3.15 | $2.70-$2.80 (very crucial, acting for months) | Weekly bearish divergence still active; break below crucial support would be a massive breakdown to ~$2.50 or ~$2. |
| Chainlink (LINK) | Following crypto market short-term dump, underperforming Bitcoin. | N/A (currently pulling back) | ~$22-$23 (immediate), $19-$20 (stronger) | Still exhibiting bearish price structure (lower highs/lows) on daily timeframe, reversal not fully confirmed. |
| Bitcoin ETF Flows | Massive institutional buying interest. | N/A | N/A | Over $1.2 billion net inflow on Monday, with BlackRock buying nearly $1 billion; suggests strong long-term bullish sentiment despite short-term dips. |
