Many cryptos performed well in the first (hopefully!) bull run of 2020, but ChainLink (LINK) topped them all after achieving double all-time-highs (on both its Bitcoin (BTC) pairing and against the dollar). Now, we’re seeing the oracle altcoin test the first clear levels on its retracement from those new highs; these first bits of information will help us forecast LINK’s performance going forward in 2020.
Starting on the daily LINK/Bitcoin chart, we see that today is developing as a big day for the crypto’s price history. It is retracing directly into two critical zones: the first prominent Fibonacci retracement level (.382), and the level of the previous all-time-high (ATH). If link were to hang on here and consolidate somewhere around this area, it would be an extremely bullish indicator for the near future.
LINK chart by TradingView
We see that volume is starting to surge in during the past couple of days, whereas it had before been in decline for the last week as price fell. We might surmise that buyers are stepping in here to catch the crypto at this level.
Moving to the daily LINK/Dollar chart, we see a similar situation with LINK retracing into the .382 Fibonacci zone. The situation is not exactly the same, though, because although the previous ATH was broken, it was barely broken and couldn’t even close the daily candle above that level.
But the red zone generally represents the wick zone of the previous ATH, and here we can draw a cohesive support/resistance zone. The bottom of this area is just about where the .382 level lies, and the daily is currently fighting right within it.
Finally, on the 3-day LINK/Bitcoin, we see that there is plenty of room down for LINK to retrace if it wants. If the previous ATH is not held, the previous market structure trendline is the next major target which is also confluent with the .618 “golden pocket” Fibonacci level. These two levels are confluent with the 8 and 21 EMAs, respectively. Either of these levels would be sufficient to preserve an HTF uptrend.
We can see the histogram rolling over here, but there are two days left in this candle and therefore we can’t give it much regard yet.
Today is an interesting day for LINK. It might pull a rabbit out of its hat and hold at a very bullish level.
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