Bitcoin is showing a short-term bullish trend, and I’m still in my long position, making good profits. I’ll share my plan for the next Bitcoin move and how I’m taking some profits now. We’re also looking at Ethereum possibly confirming a bearish signal, XRP rejecting resistance, and what this all means for the crypto market.
Bitcoin Price Analysis
On the weekly chart, Bitcoin’s trend indicator is still in the green, suggesting a bull market. However, there’s a bearish divergence to watch: higher highs in price with lower highs in the weekly RSI. The 3-day chart shows a lack of strong momentum in either direction, indicating sideways movement. This means we shouldn’t expect massive moves right away, but short-term bullish or bearish trends are possible.
Looking at the daily chart, Bitcoin is bouncing from the $112,000 support level, a level I’ve highlighted before. We’re now approaching resistance between $120,000 and $122,000. If the price hits this area, expect it to struggle or even reject. There’s also a potential bearish divergence forming on the daily RSI, with higher price highs but lower RSI highs. This isn’t confirmed yet, but it’s something to keep an eye on.
On the 8-hour timeframe, we’re clearly in a short-term bullish trend. This started about five days ago with a confirmed higher low. Breaking above the previous high confirmed a new short-term bullish trend, which is when I entered my long position. I’ve been sharing this long position in my videos for the past four days, even though some comments suggest I haven’t. It seems some beginners might be confused about different timeframes.
It’s important to understand that weekly signals, like the bearish divergence, play out over months, not days. Short-term signals on hourly charts happen much faster. So, while the weekly chart might suggest a slowdown in the coming months (perhaps by September or October), the immediate short-term trend is bullish.
I’ve been following my strategy of longing the short-term bullish trend and taking some profits at resistance levels. My initial $1 million Bitcoin long position is now just over $800,000. I’ve reduced the size slightly to secure profits and moved my stop loss further into profit. This means even if the price crashes, I’ll still secure profits. My current strategy is to stay long as long as the price structure remains bullish. I plan to take more profits as we approach $120,000, but I won’t close the entire trade, allowing for potential further upside.
Altcoin Season and Bitcoin Dominance
Bitcoin dominance is currently trying to hold support. If it breaks below 60.5% and stays there, it would be bearish for Bitcoin dominance but good news for altcoins. A confirmed break below this support level could signal a strong altcoin season.
Ethereum Price Analysis
Ethereum is close to confirming a breakout above the significant resistance between $3.9K and $4.1K on the 3-day chart. If it holds above $4.1K, it’s very bullish for Ethereum, potentially leading to a run towards $5,000 or even testing all-time highs in the coming weeks or month.
However, on the daily chart, Ethereum might be forming a bearish divergence. This would be confirmed by a pullback in the RSI, creating a lower high. This usually requires at least one or two red daily candles. Even if confirmed, it might only lead to a retest of the support level before heading higher.
For ETH/BTC (Ethereum versus Bitcoin), a bearish divergence might also be forming on the daily chart. We previously saw Ethereum outperform Bitcoin after breaking a key resistance. If this divergence confirms, Ethereum might underperform Bitcoin in the short term, meaning Bitcoin could be even more bullish. This isn’t confirmed yet, but it’s something to watch.
Solana, XRP, and Chainlink Price Updates
Solana: On the 2-day chart, Solana is continuing its short-term bullish relief. Support is expected around $167-$170. Resistance is around $190-$200. A confirmed breakout above $200 could target $230. Expect more short-term bullish relief for Solana in the coming days or weeks.
XRP: On the weekly chart, XRP still shows a confirmed bearish divergence with higher price highs and lower RSI highs. While short-term bounces are possible, the larger picture over the next couple of months suggests a potential slowdown or pullback. On the daily chart, XRP is bouncing from around $2.90, with support at $2.90-$3.00 and $3.10-$3.15. Resistance is around $3.40. The price action is currently similar to the beginning of the year, which was followed by a pullback.
Chainlink: Chainlink is showing a major bullish breakout on the daily chart, moving towards $24. If you entered a long position around $20-$21, moving your stop loss to break-even makes it a risk-free trade. Resistance is expected around $22.50-$22.60, with the next major target at $24. Support is around $20-$21, and a break below $20 could lead to support at $17.50-$18. There’s a possible bearish divergence forming on the daily RSI, but it’s not confirmed yet.
Key Takeaways:
- Bitcoin is in a short-term bullish trend, with resistance at $120K-$122K. Take profits strategically.
- Ethereum shows potential for a breakout above $4.1K, but a daily bearish divergence is forming.
- A break below 60.5% in Bitcoin dominance could signal an altcoin season.
- Solana is in a short-term bullish relief, targeting $190-$200.
- XRP faces resistance at $3.40 and has a confirmed weekly bearish divergence.
- Chainlink is breaking out, targeting $24, but watch for a potential daily bearish divergence.
