What Bitcoin’s latest rejection and liquidations mean for BTC, ETH and altcoins

Bitcoin is once again stalling at a crucial resistance level, while a large pocket of liquidity is building just below the current price. For holders and active traders, this combination is a clear signal to pay attention: the next move could be driven by liquidations and key support zones getting tested.

The bigger picture for Bitcoin: bearish trend, early bullish signals

On higher timeframes, Bitcoin is still technically in a larger bearish phase. Trend indicators on the weekly chart remain bearish, reflecting the broader downtrend that has been in place for months.

However, there is also a developing bullish divergence between price and the RSI (Relative Strength Index) on the weekly timeframe. Price has been making lower lows or moving sideways, while the RSI is starting to form higher lows. This kind of divergence often appears near the end of major downtrends, similar to what happened near the end of the 2022 bear market before the 2023 recovery.

That said, this is a long-term signal and not fully confirmed yet. It could take weeks or even months before we know whether this divergence will lead to a sustained recovery. For now, it’s a “watch closely” signal rather than a green light for aggressive bullish positioning.

If you want to go deeper into how these kinds of macro signals can line up with broader cycles, it’s worth reading this guide on why the current environment might mark the end of the bear market.

Key Bitcoin levels: support, resistance and liquidity

Zooming into the 3-day and 12-hour charts, Bitcoin is still holding above a key local low in the $59,000–$60,000 region. This area has acted as strong support multiple times and lines up with heavy trading activity in the recent past.

The RSI on the 3-day chart recently reached oversold territory and is now slowly resetting. This usually suggests that the market is due for some relief from intense selling pressure. That relief doesn’t have to mean a big rally; it can also show up as choppy sideways price action with smaller up and down moves.

On the downside, the main support zone to watch is roughly $60,500–$61,000. On the upside, the immediate resistance area is around $65,500–$66,000.

Short-term Bitcoin structure: a crucial rejection zone

On the 4-hour chart, Bitcoin recently completed (or nearly completed) a W-shaped double bottom pattern. The price pushed higher but fell slightly short of the full pattern target.

The key short-term level now is around $63,800. This price acted as resistance, then support, and has now flipped back into resistance after Bitcoin dropped below it and retested it from underneath. The current rejection from this level is a short-term bearish signal because it confirms previous support turning into new resistance.

If this rejection continues, it increases the odds of another pullback toward the $60,500–$61,000 support area. However, that doesn’t automatically mean a breakdown below the recent lows. The support cluster there is still strong.

Liquidation heat map: why $60K matters so much

Liquidation heat maps track where large clusters of leveraged positions (longs and shorts) are likely to be forced out of the market. These zones often act like magnets for price, especially in choppy conditions.

Right now, a significant pocket of liquidity has built up between about $60,500 and $60,700, with additional liquidity around $62,000. This lines up almost perfectly with the major support zone on the chart.

That combination suggests a very realistic scenario in the coming days: Bitcoin could see a controlled pullback into this liquidity pocket, trigger liquidations, and then bounce from the same area because it’s also a strong technical support.

Even if this plays out, it would still fit within a broader sideways or consolidating structure on higher timeframes, rather than a fresh full-scale crash. For a deeper look at how liquidations and derivatives positioning can drive these moves, check out this explainer on Bitcoin liquidations and funding rates.

Bitcoin dominance: neutral environment for altcoins

Bitcoin dominance (BTC’s share of the total crypto market cap) has been moving mostly sideways on the 3-day chart. This neutral trend means that, on average, major altcoins are likely to follow Bitcoin’s direction in the short term rather than decoupling strongly.

In other words, if Bitcoin pulls back to support, many altcoins may do something similar. If Bitcoin breaks out above resistance, altcoins could also catch a bid, with some outperforming and others lagging.

Ethereum: mirroring Bitcoin with strong support below

Ethereum’s 3-day chart looks very similar to Bitcoin’s. ETH recently hit oversold levels on the RSI and is bouncing from a major support zone between roughly $1,500 and $1,600, an area that has previously acted as a significant low.

This setup suggests that Ethereum is also in a relief phase: either a mild grind higher or a choppy sideways range is likely in the near term, rather than an immediate new leg down, as long as that support holds.

Key resistance levels to watch for ETH include:

• Around $1,820–$1,830 (previous local lows now acting as resistance)
• Roughly $1,970–$2,000
• The broader $2,200–$2,400 region as a higher resistance band

Short term, Ethereum is likely to echo Bitcoin’s moves. If BTC struggles at resistance or pulls back, expect ETH to do something similar. If BTC breaks out convincingly, ETH could follow and attempt to reclaim some of these resistance zones.

XRP: critical support and a potential head and shoulders

XRP is sitting on a very important weekly support level around $1.13. This area has been a key retracement level and has held the price up so far after a drop from above $1.30.

If XRP loses $1.13 with clear confirmation, the next major support and target zone lies below $1.00, roughly between $0.90 and $1.00, with a more specific focus near $0.99–$0.93.

On the 4-hour chart, XRP is forming a potential head and shoulders pattern, which is typically a bearish reversal pattern. The shoulders are roughly even, and the neckline sits around $1.12.

For this pattern to be valid, XRP would need to close a 4-hour candle below $1.12 and then stay below that level (not quickly reclaim it). If that happens, the technical target from the pattern points down toward about $0.99, which lines up with the broader $0.90–$1.00 support zone mentioned above.

However, XRP’s outlook is still heavily tied to Bitcoin. If XRP breaks its neckline while Bitcoin is also rejecting from resistance, the bearish pattern has a higher chance of playing out. But if XRP dips below support just as Bitcoin starts a strong breakout above $63,800, the pattern could fail as broader market strength lifts XRP back up.

Solana: bullish divergence but heavy resistance

Solana’s 3-day chart shows a strong bullish divergence between price and RSI, which has been helping the price attempt a recovery. At the same time, SOL is facing a major resistance band between $75 and $80. This zone was strong support earlier in the year and has now flipped into resistance.

So far, Solana has been repeatedly rejected from this area, but it’s also been trying to push into it again and again, which is consistent with a market attempting a bullish relief while being capped by a clear ceiling.

On the 4-hour chart, Solana is behaving more strongly than Bitcoin in the short term. Where BTC broke below a key resistance-turned-support level and is now struggling beneath it, SOL has retested a similar previous resistance level and bounced cleanly. This makes Solana a relative outperformer among major altcoins at the moment.

Because of this relative strength, the more interesting opportunities on Solana may be on the long side rather than the short side, especially if it forms clear bullish patterns (such as W patterns or breakouts followed by successful retests). As always, any such strategy still depends on the broader direction of Bitcoin.

Chainlink: similar story to Solana, capped by resistance

Chainlink’s 3-day chart is also showing a large bullish divergence, suggesting that selling pressure has been weakening even as price has struggled. However, like Solana, LINK is stuck under a key resistance zone that used to be support.

For Chainlink, this resistance sits roughly between $8.00 and $8.50. The current expectation is that LINK will continue to attempt a mild bullish relief, but will likely find it difficult to break cleanly above this band without broader market strength.

In the coming days and weeks, a realistic scenario is that Chainlink keeps pressing up against this resistance zone, with short-term pullbacks and bounces, as long as Bitcoin remains in a sideways or mildly bullish environment.

How to think about the next few weeks as a holder or trader

Across Bitcoin, Ethereum, XRP, Solana and Chainlink, a few themes repeat:

• Strong support zones below: BTC near $60K, ETH near $1.5K–$1.6K, XRP around $1.13 (with $0.90–$1.00 below), SOL at $75–$80 resistance above, and LINK at $8–$8.50 resistance.
• Oversold or recently oversold conditions: Many major coins have seen their RSI reset from oversold, which often leads to a period of relief or consolidation rather than immediate further capitulation.
• Key liquidity pockets: Especially on Bitcoin, large liquidation zones around $60.5K–$61K could attract price and then act as a springboard.
• Bitcoin dominance sideways: Altcoins are likely to broadly follow Bitcoin’s direction in the short term.

For long-term holders, this environment is more about patience and risk management than aggressive trading. For active traders, it’s a time to watch the key levels closely, respect support and resistance, and be aware of how liquidations can accelerate moves in both directions.

Whether you’re cautious or opportunistic here, the most important step is to understand the structure of the market rather than reacting emotionally to every short-term move. That way, you can position yourself for the next major trend when it finally confirms.