The crypto market is facing a downfall for a few days straight now as the Bitcoin price dipped from $88k to $82k while altcoins are bleeding 10-25% in the last few days.
Crypto analyst Josh from ‘Crypto World’ YouTube channel with over 210k subscribers posted a video today in which he explained what’s going on behind Bitcoin, Ethereum, XRP, Solana and Chainlink dips.
What you'll learn 👉
Bitcoin: Rejection at Key Resistance Levels Sparks Downtrend
Bitcoin’s recent price action has been disappointing for bulls as several technical indicators suggest more downside could be coming. The previously hopeful bullish divergence on the daily RSI has been invalidated, removing one of the key signals that traders were counting on for a recovery.
The leading cryptocurrency has faced repeated rejections at the $88K resistance zone, while also struggling with a descending trendline near $86K-$87K. Making matters worse, the weekly MACD remains bearish, suggesting momentum continues to favor sellers rather than buyers.
Support levels are breaking down as well. The price recently fell below $83.3K, an important Fibonacci support zone that had been holding the market up. This breakdown opens the door for a potential move toward the $70K-$74K range, which represents the next strong support area based on volume profile and previous resistance-turned-support levels.
In the short term, Bitcoin appears range-bound between $81K and $83.5K. While we might see a temporary bounce toward $85K, the strong resistance overhead will likely cap any meaningful recovery. Perhaps most concerning for bulls is the liquidity clustering around $71K, which could act as a magnet pulling prices lower in the coming weeks.
Read also: Bitcoin Price Prediction: Analyst Maps Out 3 Price Targets For BTC in 2025
Altcoin Market: Technical Breakdowns Across the Board
The situation doesn’t look much better for altcoins. Ethereum broke below a multi-year trendline that had been supporting its price for a long time. This is a big technical breakdown that signals major bearish pressure for the ETH price. ETH is now breaking below the key $1870-$1880 support zone on the 3-day chart.
If this breakdown is confirmed, Ethereum could find short-term support around $1750, but a deeper correction might target the $1520-$1540 range, which is a major support level that will likely be tested.
Solana faces similar challenges with its bullish divergence now invalidated after a confirmed RSI breakdown. The coin is currently holding above the $120-$130 support zone, but buying pressure appears to be weakening. If this support breaks, SOL could quickly fall to $90, representing a substantial drop from recent highs.
The XRP price shows an ongoing bearish divergence on the 3-day chart, though its recently oversold RSI on the 8-hour timeframe suggests a short-term relief bounce might be possible. The major support zone sits around $15-$25, while recent price action shows rejection from previous support (now resistance) between $224-$230. If we do see a bounce, traders should watch for resistance at $248 and $256.
Chainlink has been rejected from the $14.90-$15.50 range, a former golden pocket support that’s now acting as resistance. The invalidated bullish divergence on RSI indicates a loss of upward momentum. LINK is currently finding support in the $12.70-$12.80 zone, but if that fails, the next target could be $10. For now, the token remains range-bound between major resistance above and short-term support below.
Overall market sentiment remains bearish or range-bound at best. Multiple bullish divergences have already played out and exhausted themselves, making them less reliable as trading signals. Momentum continues to weaken across most cryptocurrencies, and price action lacks the strong bullish conviction needed to reverse the current downtrend.
Traders should remain cautious in this environment and consider the possibility of further downside before positioning themselves too aggressively on either side of the market.
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