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The past few days saw Bitcoin flipping the level at $42.5K from footing to resistance. Moreover, the world’s largest crypto traded sideways near $41.6K within recent hours. Though Bitcoin has experienced bearish movements since the 5 January crash, Chainlink shows massive bullishness. LINK seems to have the momentum to flip the $23.2 value level to demand from the supply.
Nevertheless, Chainlink slumped when BTC endured the latest sharp drop. The altcoin retraced to retest the support at $23.2 from the higher level of $27.5. Though Chainlink seems to decouple from the broad market, flashing high demand, LINK would only explode upwards when market sentiment shifts to neutral from bearishness.
Chainlink presents an upside trajectory for nearly the whole of January’s first week. However, the past 72 hours have had the alt establishing equal highs neat $27.17 and multiple lows in the $23.2 – $23.4 price range. Analysts use Fibonacci retracement to measure retracement zones for the asset’s move to $27.49 from $19.04.
While publishing this content, the price encountered rejection around the range highs and seemed to head south. LINK has one of its supports at $25.45, but the range lows sat at $23.2. That represents new support and higher timeframe demand confluence. For that reason, revising $23.2 might mean a ‘buy’ opportunity for altcoin enthusiasts.
Reasoning
The DMI had presented massive upsurges when Chainlink climbed from $19 to levels of $27, as the ADX and +DI stayed beyond 20. Nevertheless, ADX has dropped within the past few days, confirming weakening trends at lower timeframes.
That resonated with the notion of a range formation. The MACD sank and climbed to match Chainlink’s rejection near $27 and the $23 bounce. LINK seemed rejected near range highs again. That way, the MACD might print a bearish cross beyond the zero level soon.
Final Thought
Chainlink has stabilized at lower timeframes, and the range formation presents trading opportunities in either direction. If Bitcoin does not violate the support barrier at $40K, the coming week may see a rebound, dragging the overall marketplace upwards. For now, investors may need to wait for decisive price movements in either direction.
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