The Bitcoin warning flashing on the charts right now looks eerily similar to the pattern we saw before the last major pullback. Bitcoin is repeating the same setup — a bearish divergence forming at the top, weakening momentum, and key support being retested. If this support breaks, a significant correction could follow in the coming weeks.
Bitcoin Weekly Chart — Bearish Divergence Confirmed
The super trend indicator on Bitcoin’s weekly chart is still green, signaling a broader bull market. But the warning comes from the RSI, which is showing a clear bearish divergence — higher highs in price but lower highs in RSI.
This setup often means the market is losing momentum. It doesn’t confirm a crash yet, but it does suggest Bitcoin could be entering a sideways consolidation or multi-week correction before another rally.
If history repeats, we could see a pattern similar to what happened in late 2024 — a short period of stability, followed by a deeper retracement lasting one to two months.
Bitcoin Daily Chart — Support Holding for Now
On the daily timeframe, Bitcoin is still holding above its critical ascending support line, which has been tested multiple times since June. This level sits between $109,000 and $110,000.
So far, buyers have defended this zone every time. However, a daily candle close below $109,000, especially below $108,000, would confirm a breakdown — signaling the start of a larger Bitcoin correction that could last several weeks.
Until that happens, sideways price action remains the most likely short-term scenario.
Short-Term Outlook — Sideways Before the Decision
Right now, the market structure shows choppy consolidation — small bounces, minor dips, and no clear trend. This mirrors the same conditions seen just before the previous correction earlier this year.
If Bitcoin fails to break higher and closes below $108,000, expect a short-term bounce, then another leg down. If it holds above support, price could revisit the $116,000 zone to clear nearby liquidity before the next move.
Ethereum, Solana, and Altcoin Signals
While Bitcoin holds support, Ethereum is testing a key range between $3,900 and $4,100. This area has acted as a crucial pivot for months. If ETH closes a 3-day candle below $3,900, it could quickly drop to $3,500, the low from the last flash crash.
Solana sits between $190 and $200, retesting support after a brief breakout. If it loses this level, expect a fall toward $170 — a strong previous demand zone.
XRP faces similar pressure. A break below $2.30 would confirm weakness, potentially sending it down toward $2.00.
Overall, if Bitcoin slips, expect altcoins to drop harder. When Bitcoin dominance rises, altcoins usually underperform — a trend that’s still active today.
Bitcoin Dominance — Bullish Divergence and Its Implication
Bitcoin dominance recently bounced off resistance but still shows a bullish divergence on both the daily and 3-day charts. This indicates Bitcoin could soon start outperforming altcoins again.
That means if Bitcoin consolidates or corrects, altcoins could experience heavier losses.
Key Levels to Watch
- Immediate Support: $109,000–$110,000
- Major Breakdown Confirmation: Daily close below $108,000
- Short-Term Resistance: $116,000–$117,000
- Target if Support Holds: $121,000+
- Target if Broken: $100,000–$105,000
Until confirmation comes, Bitcoin is technically still forming higher lows — but that could change fast.
My Trading Approach During This Bitcoin Warning
If Bitcoin breaks below $109,000, it could trigger a short opportunity for traders or a buying zone for spot investors waiting for lower entries.
Until confirmation, I’m watching for range trades between $109K and $116K — small scalps within this tight channel. Once the support breaks, expect volatility to spike, offering bigger setups for both long and short traders.
Ethereum and Chainlink Trends
Ethereum still has a bullish divergence on the daily chart, suggesting possible sideways action or a short-term relief rally. Chainlink, however, continues to form lower highs and lower lows — still in a bearish trend, with resistance around $20 and support near $17–$15.
Final Thoughts on the Bitcoin Warning
The Bitcoin warning isn’t a panic signal — it’s a caution flag. As long as Bitcoin holds above $109,000, bulls remain in control. But a confirmed break below that level would likely mark the start of a larger correction lasting several weeks.
Expect sideways action in the short term and volatility to spike as the next move begins. Watch Bitcoin closely — because when it moves, the entire crypto market follows.
For live Bitcoin data and market insights, visit CoinMarketCap’s Bitcoin tracker.
Pravin is a tech enthusiast and Salesforce developer with deep expertise in AI, mobile gadgets, coding, and automotive technology. At Thoughtsverser, he shares practical insights and research-driven content on the latest tech and innovations shaping our world.
