Bitcoin Pullback Not Over? Key Support and Short-Term Risks Explained

Short-Term Pullback Risks Remain for Bitcoin

After a strong rally, Bitcoin's short-term momentum has clearly weakened. On the weekly timeframe, the Super Trend indicator has not yet flipped bullish, but it is extremely close to a reversal signal, suggesting that a medium-to-long-term trend may be brewing. Meanwhile, the weekly bullish divergence that formed several months ago continues to play out—this signal last appeared at the end of the 2022 bear market, after which Bitcoin began a multi-year uptrend.

However, on the 3-day and 4-hour timeframes, Bitcoin remains in a sideways consolidation range, with resistance concentrated in the $80,000 to $82,000 area, formed by previous highs and prior support-turned-resistance. The daily RSI briefly reached extremely overbought territory, and the 3-day RSI also briefly entered overbought conditions. Although both have pulled back, they have not fully released the pressure. On the 4-hour chart, the bearish divergence signal remains valid, further reinforcing expectations of a short-term pullback.

Key Liquidity Levels and Price Paths

The Bitcoin liquidation heatmap shows that a large amount of downside liquidity has accumulated near $76,000 (between $75,900 and $76,000), which could become a target for bears. If price tests this area, it may trigger a brief bounce, but a subsequent retest cannot be ruled out. On the upside, significant liquidity also exists in the $79,300 to $79,600 range; if the market regains upward momentum, this level could be broken and trigger a small short squeeze.

Overall, Bitcoin is more likely to maintain weak consolidation or a mild pullback in the short term to digest overbought indicators and reset momentum. This is not a trend reversal, but rather a period of accumulation for a larger upward move later.

Ethereum: $2,300 as the Bull-Bear Line

Ethereum's previously formed bullish breakout structure on the 3-day timeframe remains intact, but price is currently testing the key support area between $2,300 and $2,400, which was solid resistance in mid-2025 and has now turned into support. If the daily close falls below $2,300, or even further below $2,200, the breakout will be invalidated, and the next major support level would drop to around $1,950.

Ethereum's RSI has also pulled back from overbought territory, and short-term upward momentum is lacking. It is expected to follow Bitcoin into a consolidation phase. As long as price holds above $2,300, the medium-term bullish structure remains unchanged.

Solana and XRP: Battles at Support Levels

Solana maintains a bullish structure on the 3-day timeframe, with higher highs and higher lows, and the previous key resistance area of $96 to $99 has now turned into support. Although the daily RSI was extremely overbought and short-term pullback pressure exists, as long as price holds above $96, the medium-term uptrend can continue.

XRP is finding support in the $1.30 to $1.40 range, with the $1.30 psychological level being particularly critical. The daily RSI has pulled back from overbought territory, and the short term still needs time to digest. However, if the support below holds, there is still a chance for a rebound.

Chainlink: Bullish Divergence and Resistance Tug-of-War

Chainlink has also shown a bullish divergence signal on the 3-day timeframe, which is a medium-to-long-term bullish signal. In the short term, price is facing resistance near a level that was previously important support turned resistance, while the RSI has entered overbought territory, triggering pullback pressure. Chainlink has now begun an overbought correction process and is expected to show weak consolidation over the next few days, but the overall price structure remains bullish. Once the correction ends, it is likely to resume its uptrend.

Overall Market Outlook

Bitcoin dominance is still fluctuating within the wide range seen since November last year, indicating that the market has not yet entered a clear "altcoin season" or "Bitcoin season," and the movements of various coins are highly correlated. The short-term focus is on digesting overbought signals and waiting for new catalysts. For traders, paying attention to key support levels and liquidity levels is crucial, along with proper position management and avoiding chasing rallies or selling into dips in a choppy market.