16 Oct 2025
Bitcoin currently rejects significant resistance while confirming a new short-term bearish divergence, even as massive liquidity builds above its price. This market update also covers Ethereum breaking key support, Solana forming a new warning signal, XRP's failed breakout, and Chainlink's indecisive sideways action, alongside comprehensive trading strategies.
Bitcoin is rejecting a significant resistance level, reconfirming a new short-term bearish divergence despite massive liquidity building above its price.
The super trend indicator remains green, signaling a larger bull market, but a massive, active bearish divergence suggests a larger cool-off or slowdown, not necessarily the bull market's end.
A bullish crossover in the 3-day Bitcoin MACD is nearing confirmation, indicating a potential regain in bullish momentum and a price recovery from the previous pullback.
Bitcoin struggles at the $117,000 Fibonacci resistance level; a sustained daily candle close above this level, holding as support, would confirm a breakout targeting $120,000 and then all-time highs.
Immediate short-term support is observed just above $114,000 (around $114.5K), with a more significant support area between $113,000 and $113.5K.
A new bearish divergence is confirmed on the 4-hour chart, typically resulting in a short-term pullback or choppy sideways price action, rather than a massive crash or trend reversal.
A strong break and sustained candle closes below $114.5K would strongly confirm a bearish price structure and a trend reversal, ending the current bullish trend.
Significant liquidity, between $118.2K and $119.5K, persists above Bitcoin's price, suggesting a likely future price movement to clear this liquidity as long as the $114.5K support holds.
The current strategy involves maintaining Bitcoin long positions with secured partial profits and stop-losses placed above entry, ensuring profitability even if the price crashes, while leaving upside open for continued bullish trends.
Becoming a profitable trader involves mitigating risk near trade entry by securing partial profits and using stop-losses in profit, making it nearly impossible to incur losses.
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Bitcoin dominance is consolidating sideways with a short-term bullish divergence, but the larger 3-day trend remains bearish, generally favorable for altcoin performance relative to Bitcoin.
Ethereum is experiencing a slight pullback but continues to trade within a long-standing sideways price range, indicating a break from momentum in its larger bullish trend.
The established sideways range for Ethereum has support between $3.9K and $4.1K and resistance between $4.8K and $4.9K.
Ethereum confirmed a 4-hour candle close below the $4470-$4.5K support, with potential drops to $4370-$4380 or $4250-$4280; resistance is at $4470-$4.5K, $4540-$4550, and just above $4.6K.
Solana's long-term trend remains very bullish, but it is experiencing a slight short-term pullback.
Significant support for Solana is at $230, with further support at $215-$216; strong resistance is expected around $260.
A new bearish divergence is confirmed on Solana's 12-hour chart, suggesting a potential cool-off or sideways price action for a few days, not necessarily a major trend reversal.
XRP shows a significant bearish divergence on the weekly chart, and its daily triangle pattern breakout is failing, with a daily close below $2.90 signaling invalidation.
The potential inverse head and shoulders pattern for XRP did not confirm, indicating its non-formation due to the latest rejection from the neckline.
XRP currently lacks bullish momentum, trading in a neutral, choppy sideways range, and its immediate short-term movements are expected to follow Bitcoin's price action.
Chainlink is moving sideways in the short term, displaying a lack of follow-through and market indecision after short-term bullish or bearish moves.
Strong support for Chainlink is at $22.20-$22.40, while significant resistance areas are at $25, $25.20, and $26.80-$27.
If Chainlink confirms daily candle closes below $22 and fails to reclaim it, this would signify a major bearish trend reversal, targeting $19-$20.
Mitigating initial trade risk by strategically taking profits and implementing stop-losses in profit is the pathway to becoming a consistently profitable trader over time.
| asset | status | keyResistance | keySupport | outlook |
|---|---|---|---|---|
| Bitcoin (BTC) | Rejecting significant resistance; new short-term bearish divergence confirmed. | $117,000; $120,000 (if breakout) | $114.5K; $113K-$113.5K | Short-term weakness/pullback likely; potential bullish move if $114.5K holds and liquidity is targeted. Bearish reversal if below $114.5K. |
| Ethereum (ETH) | Slight pullback; trading in a persistent sideways range. | $4.8K-$4.9K (range top); $4470-$4.5K (immediate) | $3.9K-$4.1K (range bottom); $4370-$4380; $4250-$4280 | Choppy sideways action expected; immediate drop possible if $4470-$4.5K is not quickly reclaimed. Long-term trend still bullish. |
| Solana (SOL) | Long-term bullish; short-term pullback; new 12-hour bearish divergence confirmed. | $260 | $230; $215-$216 | Short-term cool-off or sideways action likely; not necessarily a major trend reversal from the larger bullish trend. |
| XRP | Weekly bearish divergence; daily triangle breakout failing; inverse head and shoulders unconfirmed. | N/A (lacking momentum) | $2.95; $2.90 (invalidation level) | Lacking bullish momentum, neutral/choppy sideways; follows Bitcoin's action. Break below $2.90 would invalidate the breakout. |
| Chainlink (LINK) | Bouncing sideways; lack of momentum and market indecision. | $25; $25.20; $26.80-$27 | $22.20-$22.40; $22 (major trend support) | Choppy sideways action likely. Bearish trend reversal if daily closes below $22, potentially targeting $19-$20. |
