Chainlink 2019 Gains in Danger, Massive Transfer of Wealth Incoming?

Tony "The Bull" Severino

5 years ago

3 mins read

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The crypto asset known as Chainlink or LINK, has been the talk of the cryptocurrency market for much of 2019.

The asset has strongly performed even while other altcoins struggled, and often outperformed Bitcoin at times throughout the year. However, the altcoin’s rally appears to be coming to an abrupt end, and it could end up being one of the greatest wealth transfers the world has ever seen once the resulting drop concludes.

Is Chainlink In Danger of a Deep Drop Ahead?

Chainlink started off 2019 at barely over a quarter per LINK. At its peak, the crypto asset reached as high as $4.80 on some exchanges, reaching a return of 1614% from trough to peak.

After Bitcoin peaked in June, so did Chainlink, falling to as low as $1.50 before rebounding once again. The bounce has taken Chainlink price to as high as $3.50 but appears ready for more downside in the days ahead, as bearish divergences are forming alongside a massive rising wedge, according to crypto trader Scott Melker.

$LINK (USD)

Danger, Will Robinson. Bulls want to see the ascending support of this wedge hold and will be looking for a potential hidden bull div (blue) to signal an end to the clear bear div. This is definitely the moment of truth (for now) for the USD pair. pic.twitter.com/qfYOj7VyI2

— The Wolf Of All Streets (@scottmelker) November 18, 2019

Melker claims that bulls must hold the support of the ascending wedge to force the formation of a hidden bullish divergence to “signal an end” to the “clear bear div” on LINK/USD price charts.

On LINK/BTC charts, the altcoin versus Bitcoin has signaled a TD sequential “9” sell signal, further adding credence to the theory that Chainlink’s rally is in the final stages.

Analyst: LINK Selloff Could Be One of the Greatest Transfers Of Wealth

Another crypto analyst has superimposed Chainlink’s powerful rally over a Wyckoff Method schematic depicting distribution. Each increasingly higher peak on the LINK/USD chart appears to perfectly match with the schematic.

If the schematic, used accurately across many asset types for years and years, is accurate, it would suggest that Chainlink is about to enter a markdown phase now that buying has been exhausted in the distribution range.

https://twitter.com/pentoshiswallet/status/1196326984734969856?s=12

Investors who purchased Chainlink at the start of the year near 28 cents are now selling the asset at extreme gains. As one crypto analyst points out, it could be one of the greatest transfers of wealth underway currently, right before the very eyes of crypto investors bullish on the altcoin.

If Chainlink prices do fall from here, the asset would likely look to find support between 80 cents and below the previous support of $1.50 per LINK. If LINK/USD happens to break up, a retest of the former $4.80 high could be possible. Downside targets on the LINK/BTC trading pair would reside around 24,000 satoshis to as low as 15,000 satoshis, with upside targets possible of a new all-time high against Bitcoin above 40,000 sats.

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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.