Bitcoin breakout confirmed: key levels, trading plans, and what’s next for ETH, SOL, XRP and LINK

Bitcoin has finally broken out of its recent range, confirming a bullish pattern and triggering a new wave of trading opportunities. At the same time, Solana has pushed higher from a key support zone, while Ethereum, XRP, and Chainlink are all flashing important signals of their own. Here’s a clear breakdown of what’s happening, the key levels to watch, and how traders are approaching this move.

Bitcoin’s big picture: bearish trend, bullish signal

On the higher time frames, Bitcoin is still technically in a broader bearish phase. A popular trend indicator on the weekly chart remains red, signaling that the larger trend has not yet flipped back to fully bullish.

However, the weekly Relative Strength Index (RSI) is showing a large bullish divergence: price has been making lower or equal lows while RSI has been making higher lows. This kind of divergence often appears near the end of major downtrends and can precede multi‑month recoveries. A similar setup appeared near the end of the 2022 bear market.

This doesn’t mean an immediate moonshot, but it does suggest that over the coming months, the odds favor some form of recovery or sustained relief rather than a fresh, deep breakdown.

Key Bitcoin support and resistance levels

On the 3‑day chart, Bitcoin is holding a major support zone around $60,000–$61,000. Price has bounced from this area multiple times, and the 3‑day RSI recently dipped into oversold territory and is now starting to recover.

Historically, when the 3‑day RSI moves from oversold back toward the middle of the range, Bitcoin often sees at least a modest relief move. That can play out as a slow grind higher or a choppy sideways range instead of a straight-line rally.

Important levels to watch in the short term:

Support: Around $60,000–$61,000 remains a critical zone. As long as BTC holds above this area, the current relief scenario stays intact.

Resistance: The next major resistance sits around $65,500–$66,000. This region was strong support before and has now flipped into a likely supply zone where sellers may step in.

Double bottom breakout on the 4‑hour chart

Zooming into the 4‑hour chart, Bitcoin has confirmed a bullish W pattern (double bottom). The breakout level is around $63,800–$64,000. As long as price stays above that area, the pattern remains valid.

The technical target for this breakout is around $67,700. From the breakout zone, that’s roughly a 5% move with no leverage. Traders using leverage (for example, 10x) could see much larger percentage returns, but also much higher risk.

Invalidation: If BTC closes 4‑hour candles back below roughly $63,800 and fails to reclaim that level, the pattern and its bullish target are considered invalid. Many traders would see that as a signal to cut risk or exit long positions.

Liquidity and funding: why this breakout is happening now

Bitcoin’s breakout is closely tied to liquidity and derivatives positioning:

Liquidation heatmap: There has been a large cluster of liquidity (stop losses and liquidations) just above price, especially around $64,500 and up toward $65,000. As BTC pushed higher, it began “wiping out” this liquidity, triggering short squeezes and adding fuel to the move.

Once price reaches around $65,000 and above, much of this nearby liquidity will have been cleared. That’s one reason to be more cautious in the $65,000–$66,000 zone: the fuel that helped drive the move may start to run out just as BTC hits technical resistance.

Funding rates: On many exchanges, funding rates have flipped below neutral and even into negative territory. A neutral rate is around 0.01%. When funding is negative, short positions pay longs, and longs earn funding fees. This setup financially encourages shorts to close and longs to open, which adds buying pressure.

Put simply, negative funding and stacked liquidity above price created a favorable environment for a short squeeze and a bullish breakout.

A sample Bitcoin trading approach

Many active traders are using a structured plan for this move rather than aiming for a single all‑or‑nothing exit. A typical strategy based on the current setup might look like this (for educational purposes only, not financial advice):

1. Entry: Entered long around the breakout area near $64,000 after confirmation of the double bottom.

2. First take profit: Take partial profits around the first major resistance zone at $65,500–$66,000. This locks in gains in case BTC rejects from that area.

3. Second take profit: Keep a portion of the position open targeting the full pattern objective near $67,700. If price reaches this level, close most of the remaining position.

4. Trailing stop: As the trade moves into profit, gradually move the stop loss up—first toward break-even (entry price), then into profit. That way, even if the market reverses sharply, the worst-case outcome is a small loss or a profit instead of a full drawdown.

5. Invalidation: If BTC closes back below the breakout level (around $63,800) on the 4‑hour chart, treat that as a sign to exit. The idea is to take a small controlled loss rather than hold through a potential larger drop.

For a broader perspective on why some traders like to buy into weakness and structure trades around these kinds of setups, you may find this guide on buying Bitcoin and altcoins during dips helpful.

Bitcoin dominance: BTC outperforming most altcoins

Bitcoin dominance (BTC’s share of the total crypto market cap) has bounced from support around 58%–58.5% and is now pushing higher. A continued move toward 59.5%–60% would mean BTC is outperforming most major altcoins.

In this environment, many altcoins can still rise in USD terms, but they often lag behind Bitcoin’s percentage gains. That’s one reason some traders are favoring BTC longs over altcoin longs right now, or at least sizing altcoin trades more conservatively.

Ethereum: oversold relief, but lagging behind Bitcoin

Ethereum is also showing signs of relief on higher time frames. On the 3‑day chart, ETH has bounced from a strong support zone around $1,500–$1,600, and the 3‑day RSI recently dipped into oversold territory and is now starting to recover.

This setup usually points to a period of relief: either a gentle move higher or a choppy sideways range that breaks the pattern of persistent selling. Over the next couple of weeks, ETH has room to continue this reset away from oversold levels.

However, with Bitcoin dominance rising, ETH is currently underperforming BTC. That’s why some traders are choosing to long Bitcoin rather than Ethereum for now, even though ETH’s structure also supports a short‑term relief scenario.

Solana: confirmed breakout and bullish divergence

Solana has been one of the stronger altcoins in this environment. On the 3‑day chart, SOL is showing a bullish divergence: price made lower lows while RSI made higher lows. This often signals that bearish momentum is weakening and a relief move is likely.

Key technical points for Solana:

Support: SOL recently broke above a key resistance line around $67.50–$68, which had capped price for roughly a week. That level is now acting as support.

Pattern: On the 4‑hour chart, Solana has confirmed a W pattern (double bottom), similar to Bitcoin’s structure.

Target: The technical target for this breakout is around $73–$74, just below a larger resistance zone at $75–$80. That higher zone is where previous strong support is now likely to act as resistance.

Invalidation: If SOL closes 4‑hour candles back below roughly $67.50, the breakout and its target are considered invalid. In that case, many traders would prefer to cut the trade and avoid deeper losses.

Because Solana is more volatile than Bitcoin, some traders are using smaller position sizes on SOL while still targeting similar or even larger percentage gains. For example, an 8% move from current levels to the $73–$74 target could translate to around an 80% gain on margin if using 10x leverage—again, with equally magnified downside risk.

XRP: major support and an unconfirmed pattern

XRP remains in a broader bearish trend on the weekly chart and has not yet confirmed a full trend reversal. However, it is holding an important long‑term support level around $1.13.

If XRP were to break below $1.13 with strong confirmation, the next major supports sit around $0.90 and then $0.70. Those would be the next downside targets in a continued bearish scenario.

On the 4‑hour chart, XRP is attempting to form a W pattern similar to Bitcoin’s, but this structure is not yet complete or confirmed. The neckline resistance is around $1.18. Until price breaks and closes above that level, the pattern remains only a possibility, not a trading signal.

With XRP currently underperforming Bitcoin and still below key resistance, many traders are watching rather than actively trading this setup, waiting for clearer confirmation.

Chainlink: relief rally into heavy resistance

Chainlink (LINK) has been following a textbook oversold relief scenario. On the 3‑day chart, LINK printed a bullish divergence and has since bounced into a strong resistance zone between $8 and $8.50.

This area has been the main target for the relief move. Price is now testing this zone and, as expected, struggling to break through cleanly. The most likely outcome in the near term is choppy price action around $8–$8.50 as LINK battles this resistance.

Traders who bought the bullish divergence earlier are often taking partial profits here and waiting to see whether LINK can consolidate and eventually break higher, or if it gets rejected and rolls back over.

Risk management and next steps

Across Bitcoin, Solana, Ethereum, XRP, and Chainlink, the common theme right now is “relief after heavy selling” rather than a confirmed new bull market. BTC and SOL have the cleanest bullish structures in the short term, while ETH and LINK are in relief phases and XRP is lagging.

For active traders, the key elements of risk management in this environment include:

1. Clear invalidation levels: Know exactly where your trade thesis fails (for example, BTC losing $63,800 on the 4‑hour or SOL losing $67.50) and be willing to exit.

2. Partial profit taking: Scale out at logical resistance zones (like $65,500–$66,000 and $67,700 for BTC, or $73–$74 and then $75–$80 for SOL) instead of trying to nail the exact top.

3. Adjusting stops: As trades move into profit, bring stops up to break-even and then into profit to protect gains while still leaving room for further upside.

4. Position sizing: Use smaller sizes on more volatile coins like Solana and larger, more conservative sizes on Bitcoin. Leverage should be used carefully, if at all, due to the risk of liquidation.

If you’re interested in automating parts of this process, such as entries, exits, or risk controls, tools like crypto trading bots can help. Our in‑depth review of one such tool, the UTrading crypto trading bot, covers how these systems work and what to watch out for.

For now, Bitcoin’s confirmed breakout and Solana’s strong follow‑through are giving traders a welcome break from relentless downside. As always, the edge lies not just in spotting the setup, but in managing risk and sticking to a clear plan.