Chainlink Monthly Finish Flashes Grand Finale Sell Signals

Tony "The Bull" Severino

4 years ago

2 mins read

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Chainlink has been the biggest success story in the crypto market since the 2017 bubble popped. In 2020 alone, the asset is up over 700%. From low to high the asset surged over 1200%, helping to grow the altcoin’s market cap to nearly as large as the Ripple and Tether.

But after such a sizable rally, it could be a situation of the bigger they are, the harder they fall, now that LINKUSD has triggered two sell signals on monthly timeframes.

All About The TD Sequential Indicator And What It Means For The Chainlink Rally

With last night’s August 2020 close, a new monthly candle began. The TD Sequential indicator counts each new candle as another step in a sequence. When a series of candle closes follows a specific sequence, the indicator will provide a setup signal.

If the sequence fails to complete and reach a 9 count, the series will begin again. A 9 count is just one type of sell setup along with a 13-candle countdown.

When these signals appear, it signals trend exhaustion and that a reversal could soon follow. The tool has been used throughout crypto and the broader financial market to accurately time tops and bottoms.

More weight is given to each signal depending on how high of a timeframe the signal is found on. For example, a TD 9 sell on a 4-hour chart, isn’t nearly as impactful as a sell signal on the daily or weekly.

Chainlink, the once-unstoppable cryptocurrency, just triggered not one but two of these ominous signals on one of the highest timeframes possible: the monthly.

LINKUSD Monthly TD Sequential 9 & 13 Sell Setup | Source: TradingView

TD 9 Sell Setup Triggers On LINKUSD One-Month Price Charts

The new September monthly candle open in LINKUSD, immediately triggered a 9 and 13 sell setup on the TD Sequential indicator. The tool has near-perfectly called almost every major Bitcoin top and bottom.

Because the signal is appearing on the way up at what could be the peak of a parabolic climb, the signal hints at downside, not continuation. Whether or not a complete reversal is in the cards remains to be seen.

But after such a substantial rise over such a short period, it is not uncommon for assets – especially cryptocurrencies – to over-correct. Take Bitcoin for example. After Bitcoin touched $20,000, it crashed by over 80% according to the laws of parabola.

Analysts like Peter Brandt called for the collapse based on past statistics alone from when other parabolic assets retrace. There’s no denying Chainlink went fully parabolic and into price discovery mode.

During that phase, it discovered that near $20 was the top, and now its time to discover where the bottom may be, according to the TD Sequential indicator.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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