Bitcoin Price Action: Bullish Divergence Playing Out
Bitcoin continues to show signs of a bullish divergence, especially on the daily time frame, yet it struggles to break through a critical resistance zone near $88,000. The weekly MACD remains bearish, but we may have already passed the peak of bearish momentum. Historically, after such signals, Bitcoin tends to enter a slow recovery phase, sometimes taking 1–2 months before any strong bullish rally kicks in.
Currently, the Supertrend Indicator on the 4-day chart is still red, indicating a need for patience among bullish traders. As long as Bitcoin remains below $88K, a breakout remains speculative.
Key Bitcoin Support and Resistance Levels to Watch
On the daily and 3-day charts, the following levels are key:
- Resistance: $88K (major), then $91.5K–$92K, and $96K as a higher target
- Support: Around $83K, with intermediate support near $86.5K
Short-term, on the 4-hour chart, Bitcoin is trading within an ascending parallel channel, signaling a bullish structure with higher highs and higher lows. Resistance appears at $88.5K and $89.5K, while short-term support lies near $84K–$86.5K.
As long as the bullish divergence remains unbroken, short-term upside remains possible, though heavy resistance above keeps full bullish breakout potential limited.
Ethereum Still Bearish Despite Holding Support
Ethereum (ETH) maintains a larger bearish structure on the weekly time frame, despite recent short-term bounces.
- Support: $1,870–$1,880 (Fibonacci level)
- Resistance: $2.1K–$2.2K (critical rejection zone)
A confirmed breakout above $2.2K could open doors to $2.5K or even $2.8K, but until then, ETH’s momentum remains more bearish than bullish on the larger scale.
Solana Shows Temporary Relief, But Watch Support
Solana (SOL) is bouncing between $120–$130, a key short-term support zone. However, its longer-term trend remains fragile:
- Support: $120–$130 (critical), below which a move to $90 becomes likely
- Resistance: Around $148–$149, then $170
A bullish divergence is still active on the daily chart, suggesting potential sideways or slightly upward movement unless invalidated by a breakdown.
XRP Faces Bearish Divergence and Lacks Momentum
XRP continues to struggle with a massive bearish divergence on the 3-day chart, keeping bullish momentum capped.
- Support: $2.24–$2.30, then $1.95–$2.05
- Resistance: $2.50–$2.56, followed by $2.65–$2.80
For now, XRP trades within a sideways range and lacks clear direction. Until it breaks out of this range, expect choppy price action with no strong trend in either direction.
Chainlink Battles Resistance, but Bullish Divergence Active
Chainlink (LINK) is still struggling to break through the golden pocket resistance between $14.90 and $15.50.
- Resistance: $15.50 (key), then $17.50
- Support: Below $14.90 (not strongly defined)
Despite the resistance, a bullish divergence remains active, and the fact that LINK is hovering around this zone without heavy rejection suggests strong buying interest. A confirmed breakout could push LINK toward $17.50.
Market Sentiment: Funding Rates and Liquidation Zones
Funding rates for Bitcoin are shifting back toward neutral territory after being heavily negative. This slightly reduces the chance of a short squeeze, though some altcoins like XRP and Solana still have funding rates in the negative zone, which could increase squeeze potential for them.
Key Liquidity Zones (Bitcoin):
- Downside Liquidity: $71K–$74K
- Upside Liquidity: Just below $90K and near $100K
These zones represent areas where large liquidations could be triggered, potentially influencing price volatility.
Final Thoughts and Trading Opportunities
- Bitcoin is showing early signs of recovery, but the rally is far from confirmed.
- Ethereum and Solana are bouncing from support but remain in macro bearish trends.
- Chainlink is potentially preparing for a breakout if resistance weakens.
- XRP is range-bound and lacks strong momentum for now.
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