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Market Analysis: Bitcoin and Altcoins Show Signs of Short-Term Exploration Amid Longer-Term Pressures

Bitcoin’s Short and Long-Term Outlook: Potential Upside Resistance Meets Deeper Bearish Divergence

The current landscape for Bitcoin remains nuanced, with short-term bullish signals contrasting with significant bearish indicators on larger timeframes. In the immediate term, Bitcoin has yet to invalidate its short-term bullish divergence, as the formation of a new price pattern suggests a possible upward move. A notable pattern, the cup and handle, is currently forming on the 4-hour chart, potentially setting the stage for a rally toward $113,000–$114,000 if confirmed through a decisive daily close above $107,000.

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However, on the broader weekly horizon, the super trend indicator remains in the green, signaling the underlying strength of the larger bull market. Despite this, a significant bearish divergence persists, exerting downward pressure on Bitcoin’s price. This divergence, evident on the weekly chart, signals potential weakness over the coming weeks, particularly in the next 1–4 weeks. Historically, such divergences have foreshadowed retracements or consolidations before any major bullish advances.

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Currently, the daily chart shows Bitcoin trading above support zones near $99,000–$100,000. Resistance levels are identified at $106,000–$107,000, with a strong resistance at approximately $111,000, which needs to be cleared for further bullish momentum. The overarching structure remains somewhat bearish, with shorter-term relief rallies often faced with rejection at key resistance zones.

Short-Term Price Pattern and The Cup and Handle Prospect

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The formation of a cup and handle pattern on the 4-hour chart presents a promising bullish development, provided it confirms with a candle close above 106.5K–107K. The measured move from this pattern targets around $113,000 to $114,000, offering a potential entry point for traders looking for short-term gains. Yet, caution is advised; resistance at $111,000 could lead to rejection before reaching the target.

Trade strategies centered around this pattern often involve entering a long position on confirmation of a daily close above key resistance, with profit-taking near the measured target and using dynamic stop-loss adjustments to lock in gains.

The Role of Liquidity and Market Heatmaps

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Bitcoin’s liquidation heat map indicates a new buildup of support just above current price levels, with notable liquidity clusters around $107.5K. This suggests increased probability for a short-term spike above $107,000 to wipe out sell stops and trigger bullish moves. Confirmation requires a sustained candle close and holding above this level.

Additionally, the market’s liquidity zones act as a barometer, hinting at potential swings. If the price breaches the $107.5K liquidity area convincingly, a rally toward the upper resistance levels becomes more probable, highlighting the importance of monitoring these zones for short-term trading opportunities.

Ethereum and Major Altcoins: A Mixed Picture of Rebound and Resistance

Ethereum’s Retest of Critical Resistance

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Ethereum is nearing a crucial resistance at approximately $3,650–$3,660, aligning with Fibonacci retracement levels derived from prior support zones. The recent retest of this resistance indicates a potential breakout scenario. A sustained break above $3,700 could pave the way toward the next major resistance around $4,200, marking a significant bullish milestone.

Currently, Ethereum’s support is firm at around $3,050–$3,100, with a bounce from this area signaling a short-term relief rally. The RSI on the daily timeframe suggests oversold conditions, which could support some further upward movement.

Altcoins in the Short-Term Range: Solana, XRP, Chainlink

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• Solana (SOL): Over the past two days, SOL has traded sideways between support at $143–$147 and resistance near $170. A breakout above $170 might set sights on $190–$200, but confirmation requires a strong candle close above resistance.

• XRP: The weekly bearish divergence is still active, yet the short-term setup shows the price holding support around $230–$240 after retesting this zone. If Bitcoin advances, XRP could retest recent resistance near $260–$270.

• Chainlink (LINK): Currently sideways between $15.20–$16.60, LINK’s support at around $15.20 is holding. A breakout above $16.60 could target $19–$20, setting the stage for a potential trend shift in the medium term.

Market Dominance and Broader Sentiment

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Bitcoin dominance remains relatively neutral in the short term, implying that altcoins are likely to follow Bitcoin’s price action closely. No significant shifts have been detected, suggesting a consolidation phase where market participants await clearer signals before committing substantial moves.

Trading Opportunities and Strategic Considerations

Trading the Breakout: Confirmations and Targets

The current key to success lies in confirming breakouts with candle closes and holding above critical resistance points. For Bitcoin, confirmed breakout above $107,000 could justify entering long positions toward $113,000–$114,000, while avoiding premature entries based on incomplete signals.

Use of Leverage and Portfolio Management

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Traders are advised to employ dynamic risk management techniques such as trailing stops and partial profit-taking, especially given the volatility around resistance zones. Monitoring the liquidity heatmap and order blocks can aid in timing entries and exits.

Bonuses and Platform Promotions

Multiple exchanges offer promotional bonuses, including Pinex with a $50 USDT bonus upon KYC completion, and deposit bonuses up to $1,000 USDT. No KYC exchanges like TwoBit also provide significant trial funds and free sign-up bonuses, making it attractive for traders to capitalize on short-term opportunities without extensive KYC hurdles.

Final Thoughts: Patience, Confirmation, and Market Awareness

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While the short-term setup for Bitcoin and select altcoins appears promising, traders should exercise patience until clear confirmation signals emerge. The presence of bullish patterns amid bearish divergences underscores the importance of cautious optimism.

In conclusion, closely monitor resistance levels, liquidity zones, and market sentiment to navigate the upcoming weeks. Combining technical insights with disciplined risk management will be key to capitalizing on potential short-term movements while maintaining awareness of the broader bearish pressures that could influence the longer-term trend.

Stay informed, verify signals, and trade responsibly.

Do you think it will get down to support or will the market turn before then?