ChainLink (LINK) has set a new all-time-high on its Bitcoin trading pair, and has very nearly done the same against the dollar. As with several other cryptos in these recent days, LINK has secured a powerful HTF uptrend that will not be too difficult to defend as we get into the meat of 2020.
We begin on the 3-day LINK/Bitcoin chart, and see that this move has come very quickly after the break from the downtrending consolidation line just a few days ago. LINK was not messing around, and has quickly broken its all-time-high just hours ago.
Ideally, LINK will be defended at this all-time-high mark at ₿0.000395. It is still in a sort of danger zone, where price is unstable enough for the level to quickly fake out and head back down – which would instead constitute a rejection at the level. The longer it lasts above the level, the safer it will be.
But ultimately, if it is rejected with a rapid reversal, there is plenty of room for a healthy consolidation anywhere above ₿0.00035. We should welcome such a move if it comes, to build a more healthy base for HTF gains going into 2020.
It is interesting to note here how modest volume has been (Binance), being only a fraction of that needed to reach the previous all-time-high.
Moving to the equivalent LINK/Dollar chart, we see a nearly comparable situation, with LINK taking a sharp jab at the all-time-high at $4.58. The indicators here, as with Ethereum (ETH), Bitcoin (BTC), and just about everything else, are deeply overbought already, and some consolidation within the red zone would perhaps be ideal.
Still acceptable would be a fall back down to the area around $3, for a retest of the larger uptrend. Any retracement and consolidation above $3.25, above the .382 retracement level, would still preserve an extremely bullish HTF profile for LINK.
ChainLink is extremely bullish in the long term, along with the rest of the market. But on the MTF chart, this (market-wide) parabolic move is becoming alarming. There is no great urgency here to crack either all-time-high if buyers are already exhausting the market to the upside. We should welcome some pullback on LINK for the market to recover, and let new buyers be enticed into the market by all the green.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.
Featured Image Credit: Photo via Pixabay.com