Following a full 50% retrace of the rally against BTC, Chainlink is now “ready to continue,” according to one crypto analyst. Here’s what that could mean for both cryptocurrencies in the days and weeks ahead.
Chainlink Continuation Likely, As Crypto Market Catches Fire
The 0.5 and 0.618 Fibonacci retracements levels often act as a critical point where reversals take place and is precisely where the LINKBTC pair began to turn around. Does this mean Chainlink will go back to outperforming Bitcoin or is something else going on?
At the peak of the 2017 Bitcoin rally, the top cryptocurrency reached $20,000 and became too expensive for the average retail investor to purchase one full BTC. It led to the investor class looking towards altcoins that could someday follow in Bitcoin’s footsteps.
Ethereum, Litecoin, XRP, and just about every other coin aside from Bitcoin exploded in value, but at the same time popped the crypto bubble of that year.
After such an enormous rise in Chainlink, a breakdown from its parabola should have resulted in as much as an 80% correction, much like Bitcoin suffered during its bear market. But because Bitcoin and the rest of crypto is so bullish, the rising tide is lifting the Chainlink boat also.
How buoyant the altcoin is from here, remains to be seen.
Featured image from Deposit Photos, Charts from TradingView.com