Bitcoin Price Market Update and Trading Strategy

Bitcoin Bounces from Key Support

Bitcoin is bouncing from a critical support level as the price reacts to an oversold signal in the short term. This movement is crucial in determining the next price direction.

Ethereum and Solana Support Levels

Ethereum is currently testing its most significant support line, while Solana remains above an essential support area.

XRP Bearish Divergence and Chainlink Fibonacci Bounce

XRP is attempting to hold a key support level but is showing signs of a bearish divergence. Meanwhile, Chainlink has experienced a significant bounce from a critical Fibonacci level.

U.S. Stock Market and Crypto Correlation

The S&P 500 Index recently saw a sharp drop, correlating with a decline in crypto prices. This drop was triggered by concerns over trade tariffs and recent economic uncertainties. Given that crypto markets often mirror stock market trends, traders should closely monitor these correlations.

Bitcoin Weekly Time Frame Analysis

Despite short-term pullbacks, Bitcoin remains within a larger bull market. Historical trends show that corrections occur during bull runs, and Bitcoin’s long-term outlook still appears strong.

Potential Bearish Crossover in Bitcoin MACD

Bitcoin’s weekly MACD indicator is nearing a bearish crossover, which, if confirmed within the next one to two weeks, could indicate a prolonged bearish trend similar to past cycles. A bullish move is required soon to avoid this scenario.

Bitcoin Short-Term Trading Strategy

Bitcoin Price recently broke below key support at $101,000, leading to a short-term bearish move. Traders who shorted Bitcoin after this breakdown have seen profitable opportunities. Bitcoin Price next significant support level lies between $91,000 and $92,000, where Bitcoin Price has found a temporary bottom.

Bitcoin Price Support and Resistance Levels

• Support: $91,000–$92,000
• Resistance: $101,000–$103,000 and $106,000–$107,000
  Bitcoin’s short-term price action may remain choppy, with possible sideways movement and slight bullish relief.

Oversold Signal and Market Rebound

Bitcoin Price has confirmed an oversold signal on the 4-hour chart, suggesting a temporary local bottom. While a long-term bearish trend remains a possibility, Bitcoin is likely to hold above the $91,000–$92,000 range for at least the next few days or weeks.

Bitcoin Price Liquidation Event and Market Impact

A significant liquidation event wiped out many long positions around $97,000, triggering a long squeeze. This led to the sharp drop seen recently. As the market stabilizes, traders should watch for key resistance levels to assess further price movement.

Bitcoin Price and Crypto Market Update – February 2025

Bitcoin Price Market Overview

Bitcoin recently experienced a liquidation event, wiping out long positions and causing a drop toward the $91,000–$92,000 range. While the market initially cleared most of the short-term liquidity below Bitcoin price, further downside liquidity remains at $91,000 and $88,000. On the upside, Bitcoin Price major liquidity pools exist at $107,000, $108,000, and $110,000, positioned above key resistance levels.

Funding Rates Indicating Short-Term Reversal?

Most crypto exchanges are currently showing significantly negative funding rates, well below the neutral rate of 0.01%. This suggests that traders are heavily shorting Bitcoin after the recent decline. Historically, when the majority of traders bet on further downside, the market tends to move against them. Given these conditions, a short-term relief bounce toward resistance levels appears likely.

Ethereum Holding Multi-Year Trendline

Ethereum (ETH) is currently testing a multi-year trendline of support at approximately $2,650. Since mid-2022, ETH has seen multiple strong bounces from this level, making it a crucial support for maintaining the long-term bullish structure.

• Key Support Levels:
  • $2,650 (multi-year trendline)
  • $2,500 (intermediate support)
  • $2,150–$2,200 (golden pocket)
• Resistance Levels:
  • $2,700–$2,800 (immediate resistance)
  • $3,000–$3,100 (strong resistance)

If Ethereum breaks below $2,600 and starts confirming weekly candle closes below this level, it could trigger a bearish shift toward the $2,200 range.

Solana Price Action and Support Levels

Solana (SOL) recently experienced a sharp move downward after breaking below $200. As expected, the price quickly dropped toward the $178–$183 range, where it found strong support.

• Key Support Levels:
  • $178–$183 (major support)
  • $156–$160 (next support level)
• Resistance Levels:
  • $220–$225 (short-term resistance)
  • $245–$246 (major resistance)

For now, Solana remains in a consolidation phase. A break above $225 could signal further upside, while a drop below $178 could open the door for a move toward $160.

XRP Facing Bearish Divergence

XRP is currently testing support at $195–$205, a critical range based on previous lows. The price briefly dipped to $173 before recovering slightly.

• Support Levels:
  • $170–$173 (local support)
  • $195–$205 (key support zone)
• Resistance Levels:
  • $290 (short-term resistance)
  • $315–$320 (strong resistance)
  • $330–$340 (major resistance)

A bearish divergence on the daily and 3-day time frames suggests that momentum is weakening. While short-term bounces are possible, XRP may struggle to maintain significant upside.

Chainlink Rebounds from Fibonacci Support

Chainlink (LINK) recently bounced from its golden pocket support level around $14.90–$15.50.

• Support Levels:
  • $19–$20 (current support)
  • $17.60–$17.70 (intermediate support)
  • $14.90–$15.50 (major Fibonacci support)

Given recent price action, Chainlink is expected to hold above $15 in the short term. The market may see choppy sideways movement as it stabilizes.

Cardano Short Trade Profits and Future Outlook

Cardano (ADA) saw a sharp decline after breaking below $0.80, dropping nearly 40% to a low of $0.51. Traders who shorted ADA before the drop saw significant profits.

• Support Levels:
  • $0.72–$0.73 (short-term support)
  • $0.60 (strong support)
  • $0.51 (recent low, unlikely to break in the short term)
• Resistance Levels:
  • $0.82–$0.83 (initial resistance)
  • $1.13–$1.23 (strong resistance)

For now, ADA is likely to consolidate after the major price drop, with a higher probability of sideways movement before any strong directional move.

Conclusion and Trading Strategy

• Bitcoin: Short-term relief bounce likely, resistance at $101K–$103K and $107K–$108K.
• Ethereum: Holding long-term support at $2,650. Watch for a breakdown below this level.
• Solana: Key support at $178–$183; break below could lead to $160.
• XRP: Bearish divergence in play; resistance at $290 and $315.
• Chainlink: Likely to stay above $15, with resistance near $20.
• Cardano: Expect sideways action after the sharp drop.

Final Thoughts

The crypto market is in a volatile phase, with many assets approaching key support levels. While short-term relief bounces are likely, traders should remain cautious and manage risk carefully. For those interested in trading opportunities, check out the recommended exchanges and strategy videos linked below.