As Bitcoin continues to maintain a bullish breakout on larger timeframes, the short-term price action presents a mixed outlook. Although Bitcoin is still dealing with a short-term bearish divergence, the larger picture remains optimistic.
However, a major liquidity buildup on the downside below the current price points to a potential long squeeze, which could bring more volatility to the market. Let’s dive into the latest price action and analyze what to expect next for Bitcoin, Ethereum, and Solana.
Bitcoin Price Analysis (4-Day Chart)
Starting with the 4-day Bitcoin chart, the SuperTrend indicator is still in the red, signaling that the larger timeframe remains cautious. However, a breakout above $715,000 with a confirmed candle close could flip this indicator to green, indicating a new bullish momentum.
The 3-day chart has already flipped into the green, but ideally, we would want confirmation on the 4-day chart to establish a more reliable signal. Historically, this indicator has been accurate on these larger timeframes.
Key Levels to Watch:
- Support: $655,000 to $660,000
- Resistance: $695,000, with stronger resistance around $720,000 to $735,000 (all-time high levels)
At the time of analysis, Bitcoin is holding above the $655,000 to $660,000 support zone, which is positive for the longer-term trend. As long as Bitcoin stays above this zone, the overall price structure remains bullish. However, keep in mind that bullish long-term trends can include short-term pullbacks or corrections.
Short-Term Outlook (3-Hour Chart)
On the 3-hour Bitcoin chart, we see a short-term bearish divergence, which has already played out over the past two days. Generally, such patterns don’t last longer than 1-3 days on smaller timeframes, and while further downside is possible, this bearish pattern is nearing exhaustion.
Additionally, we see a buildup of liquidity below the $660,000 level, which suggests the potential for a long squeeze. If Bitcoin falls below this level, a wave of long liquidations could trigger further downside pressure.
Ethereum Price Analysis (3-Day Chart)
Ethereum has been facing rejection from a key resistance zone around $2,700 to $2,800. The 3-day chart shows Ethereum still struggling to break through this level, which remains a critical resistance area. The 12-hour Ethereum RSI has cooled off from overbought territory, which usually signals reduced bullish momentum and either a short-term pullback or sideways price action.
Key Support Levels:
- Support: $1,550 to $1,580
- Resistance: $2,700 to $2,800
While Ethereum faces short-term resistance, the larger trend remains bullish as long as support holds. It’s likely we’ll see more sideways movement or a slight pullback before the next move higher.
Solana Price Analysis (Daily Chart)
Solana has been trading within a sideways range between $159 and $175. This range represents the key support and resistance levels, with traders buying around $159 and selling around $175. Despite the recent consolidation, Solana remains in a bullish breakout from an inverse head-and-shoulders pattern, provided it stays above the support zone.
Conclusion: What’s Next for Bitcoin and Ethereum?
The overall trend for Bitcoin, Ethereum, and Solana remains bullish on larger timeframes, but we are seeing some short-term cooling off in the form of pullbacks and consolidation. Watch for a potential long squeeze in Bitcoin if the price dips below $660,000, which could add volatility to the market.
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As always, stay informed and manage your risk, especially during periods of market uncertainty.
That’s it for today’s analysis. Thanks for reading, and stay tuned for more updates
