Analyst: After A 50% Retrace Against Bitcoin, Chainlink Is “Ready” To Soar

Tony "The Bull" Severino

1 year ago

3 mins read

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All the way up until around mid-2020, Chainlink was the hottest crypto token around. But once Bitcoin broke above $10,000 months ago, the altcoin’s uptrend against the top cryptocurrency was broken.

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

Chainlink is up nearly 15% intraday today already, with hours left to go before the daily close. The move sent the altcoin to the highest point in USD value since its all-time high was set earlier this year.

Chainlink spent the last two years running as the crypto market’s top performer. But as soon as Bitcoin had its major breakout, the decentralized oracle token began to sink and retrace its epic rally.

But according to one analyst and their take on the LINKBTC pair, the altcoin is down but not out, and is “ready to continue” its rally following a 50% retrace against Bitcoin.

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?

LINK outperformed BTC for nearly two years. Could that trend continue from here? | Source: LINKBTC on TradingView.com

Will Bitcoin Allow Altcoins To Shine Once Again?

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.

Crypto is bubbling back up, and this time, things are quite different for Bitcoin who is now being bought up by the wealthy with money to spare.

And with Bitcoin now returning to prices that are out of reach for the average investor, altcoins are suddenly becoming much more attractive once again.

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

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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