16 Oct 2025
Bitcoin is on the verge of an imminent price breakout and a potential short squeeze, with significant liquidity just above its current price. This analysis provides detailed trading strategies and market insights for Bitcoin, Ethereum, XRP, Solana, and Chainlink, forecasting continued bullish moves and key price levels.
The weekly Bitcoin price chart's super trend indicator remains green, signaling a larger bull market, despite a massive uninvalidated bearish divergence. A new bullish crossover on the 3-day MACD is imminent, potentially within days, supporting a continued short-term bullish recovery.
Bitcoin's price is testing and potentially breaking out above a key resistance level at approximately $117,000, setting a slight higher high indicative of short-term bullish structure. If Bitcoin holds above $117,000 as new support, the next major resistance target is around $120,000, with a potential move towards all-time highs around $124,000.
Initial support for Bitcoin is expected at approximately $117,000. If that level breaks, further support lies around $114,000-$112,000 and $113,000.
The 4-hour Bitcoin price chart clearly shows higher lows and higher highs, confirming a short-term bullish trend that has been consistent for weeks, leading to sustained long positions.
A previously confirmed short-term bearish divergence between Bitcoin's price highs and lower RSI highs has played out but is now invalid due to the recent breakout. A new possible bearish divergence is currently forming on the 4-hour RSI, showing lower highs despite new price highs, serving as a potential unconfirmed warning signal for a slight cool-off.
The Bitcoin liquidation heat map reveals a significant area of liquidity just above $118,000, extending towards $119,000. This indicates an extremely likely further bullish move to wipe out short positions, triggering a short squeeze, and potentially pushing the price towards $120,000.
Long positions in Bitcoin are maintained, with strategic profit-taking at resistance points by slightly reducing position size rather than closing entire trades. Stop losses are positioned to secure profits even in a worst-case scenario, demonstrating a profitable trading approach generating significant unrealized and realized gains.
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Bitcoin dominance is potentially preparing for a larger pullback, which would be beneficial for altcoins. If Bitcoin dominance is neutral or bearish while Bitcoin shows bullish price action, altcoins tend to outperform Bitcoin.
Ethereum continues to trade within a sideways range between support at $3,900-$4,100 and resistance at $4,800-$4,900, with short-term support around $4,250. The long-term trend for Ethereum remains bullish with significant bullish price structure, currently experiencing a major bounce from support at $4,470-$4,500.
Solana is continuing its long-term bullish trend, forming higher lows and higher highs on the 2-day time frame. Recent candle closes above and a retest bounce from the $230 Fibonacci level confirm it as new support. The next significant resistance is expected at $260-$265, with a target towards $290-$300 if this resistance is breached.
XRP still exhibits a massive uninvalidated bearish divergence on the weekly time frame.
A breakout from a triangle pattern on the daily XRP chart remains technically active, holding above $3.00 and especially $2.90, with a price target just above $3.80. However, bullish momentum is currently lacking, suggesting potential struggles at intermediate resistance levels.
A recent pullback in XRP formed a possible right shoulder for an inverse head and shoulders pattern on the daily chart. To confirm this pattern and activate a bullish price target of just above $3.50 ($3.52), a daily candle close and sustained hold above the neckline at $3.13-$3.14 is required.
Chainlink is following the broader crypto market with a short-term bullish move, though it currently lacks strong momentum. The daily time frame remains within a larger bullish trend, forming higher lows and higher highs, as it holds above $22. Expected resistance levels are around $25.20 and major resistance at $26.80-$27.00.
It is extremely likely that very soon the price of Bitcoin will see a further bullish move to wipe out all of this liquidity, effectively causing a slight short squeeze and pushing closer towards 120,000.
| Asset | Current Outlook | Key Resistance | Key Support | Pattern/Indicator Note | Price Target (if applicable) |
|---|---|---|---|---|---|
| Bitcoin (BTC) | Imminent Breakout & Short Squeeze | $117,000 (currently testing/breaking), $120,000 (next major), $124,000 (all-time high target) | $117,000 (new support), $114,000-$112,000, $113,000 | 3-day MACD bullish crossover imminent, massive liquidity above $118,000 signaling short squeeze. | Towards $120,000 in short-term. |
| Ethereum (ETH) | Major Bounce, Long-Term Bullish | $4,650 (short-term), $4,800-$4,900 (significant) | $4,470-$4,500 (current bounce area), $4,250-$4,280 (next significant), $3,900-$4,100 (larger range support) | Trading in a larger sideways range but long-term bullish structure. | Follows Bitcoin's bullish moves, especially with neutral/bearish BTC dominance. |
| XRP | Potential Inverse Head & Shoulders Confirmation | $3.12 (intermediate), $3.30-$3.40 (strong), $3.13-$3.14 (IHS neckline) | $3.00, $2.90 (key levels for triangle breakout) | Inverse Head and Shoulders pattern formed but unconfirmed; requires daily candle close above $3.13-$3.14 neckline. Existing triangle breakout target at $3.80 lacks momentum. | $3.52 (if Inverse Head and Shoulders confirms). |
| Solana (SOL) | Continuing Long-Term Bullish Trend | $260-$265 (significant), $290-$300 (next target) | $230 (confirmed new support) | Forming higher lows and higher highs; $230 Fibonacci level flipped to support. | Towards $290-$300 if $260-$265 is broken. |
| Chainlink (LINK) | Short-Term Bullish Move, Lacking Momentum | $25.20 (short-term bounce), $26.80-$27.00 (major) | $22.00 (holding above) | Larger bullish trend maintained with higher lows and higher highs; momentum is flat. | Influenced by Bitcoin's short-term bullish action and Bitcoin dominance. |
