• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo
Home Cryptocurrency news

Smart Money Indicator Signals Bitter End To Chainlink Uptrend

Tony Spilotro by Tony Spilotro
6 months ago
in Cryptocurrency news, Technical analysis
Reading Time: 3min read
chainlink smart money indicator

A male business person holding an electric light bulb in his hand with beam rays illustration concept.

Advertisement

Chainlink has been the highlight of the crypto market for the last few years. It is about the only asset setting new record high after high. Meanwhile, the rest of the asset class is down between 40% to as much as 90% or more in some cases from their peaks.

However, an indicator that spots behavioral patterns by “smart money” may be signaling that Chainlink’s uptrend is over for good. Or at least until a strong enough correction makes prices attractive once again. Here’s what to expect if the indicator happens to be correct.

Chainlink Correction Becomes More Likely As Indicator Uptrend Comes to a Finish

Prior to the crypto bubble popping, crypto investor success stories were a dime a dozen. New millionaires were popping up nearly as fast as new ICOs were.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

But after the bubble burst and valuations came tumbling back to reality, those success stories have been few and far between. In fact, many of them turned into horror stories, where fortunes on paper evaporated into realized losses and people panic-sold.

Related Reading | Easy Money? Coinbase Crypto Coins Grow Over 50% On Average In August

Chainlink is one of the very few new fortunes made since then. Both dumb luck and smart money bought Chainlink early, and have profited handsomely.

But the rally appears to be peaking, and profit-taking about to begin. An indicator that could assist analysts in watching what smart money does to take action may be giving a strong tell that Chainlink’s correction is about to get violent.

On-Balance Volume: The Smart Money Indicator That May Be Calling LINK’s Peak

If you’ve been around investing or trading, it is likely you have stumbled upon the term “smart money.” It’s understood to reference high-wealth whale or institutional money, but more importantly, those with the skills and experience to know when to move before the market does.

Related Reading | Look Out Below: How Far Can The Chainlink (LINK) Crash Go?

Trading indicators often only give signals after something has happened. The On-Balance Volume indicator, however, was designed to track what smart money does, and therefore give an early signal as to what type of price action to expect.

The tool is based on the theory that volume precedes price, and after a strong rise in volume, often comes and equally strong price movement. The OBV indicator translates this volume into a visual line chart, that analyst can draw lines across for technical analysis.

 chainlink linkusd

LINKUSD On-Balance Volume Daily Price Chart | Source: TradingView

This particular indicator might be suggesting that so-called “smart money” is selling their Chainlink ahead of a massive drop and markdown. This is all according to LINKUSD losing an uptrend line on daily OBV dating back since Black Thursday.

On Black Thursday, LINKUSD flash crashed to $0.001 on some exchanges. Those who caught that bottom made an absolute killing. Even anyone who bought at normal prices that day has over 10 times their gains if they sold the top.

With so much money in profit, smart money is preparing to take some off the table before the wheels come out from under the rally. The cryptocurrency could fall as deep as $7, or as low as $4 from before the asset took off into price discovery.

 chainlink linkusd ihs

LINKUSD Possible IHS Reversal Pattern | Source: TradingView

A bounce at $7 first, could act as a catalyst to crash even lower, taking LINKUSD down to just $4 per token. Where both daily, weekly, and monthly support lie. $7 also coincides with an uptrend line on price charts, separate from any uptrend line on the OBV.

$20 was too much for even Chainlink’s momentum, and the asset has been tumbling since. The one savior steadfast Link Marines have in their favor, is the fact that this same indicator on weekly timeframes, leaves the uptrend line unbroken.

 chainlink linkusd weekly

LINKUSD On-Balance Volume Weekly Price Chart | Source: TradingView

However, top investment analysts are still claiming that Chainlink is wildly overvalued according to its annualized growth rate, and could experience a significant correction by 50% or more.

These figures match up well with the targets of the broken parabola, which range from 50% to a full 80% before finding support.

Tags: altcoinchainlinkcryptoLINKBTCLINKUSDlinkusdtobvon balance volumeon balance volume indicator
TweetShare
Nexo Logo
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
Tony Spilotro

Tony Spilotro

I'm Tony Spilotro. Behind the pseudonym, I'm a digital media executive and global remote work leader with a decade of content experience and excellent. Here, I explore my newfound passions pertaining to privacy, finance, economics, politics, cryptography, property rights, and other libertarian-esque views. I am a Bitcoin evangelist, maximalist, and educator whenever I can be, helping to spread its message of freedom from government control, monetary policy mismanagement, and passing the buck - literally – to future generations. My journey from a curious retail crypto investor to a serious Bitcoin advocate, trader, and technical analyst is an unusual one, but life-changing nonetheless and has become less about money and more about a long-overdue revolution. While a firm believer in the laws governing math and science, I am profoundly fascinated by the impact of astrology and astronomy including moon and solar cycles and planetary alignment and their ability to influence and potentially predict markets. It hasn't yet clicked for me as to how to put anything to use, but I consider it my current rabbit hole I can't yet dig out of. My perspective of growing up alongside the internet, the dot com era, the Great Recession, and roots in video games collecting coins and rare items caused Bitcoin to immediately make sense to me. Through all of these lenses, I seek to produce content that is educational and entertaining, and I thank you sincerely for taking the time to read what I have to say. Please follow me on Twitter and feel free to drop me a line if you would like to work together.

Related Posts

Ethereum

TA: Ethereum Bulls Keeps Pushing, Why $1,720 Is The Key For Fresh Rally

2 hours ago
Bitcoin

TA: Bitcoin Consolidates Above $50K Why BTC Could Face Bears At $52K

4 hours ago
bitcoin collateral

Summing Up The Case For Bitcoin As The Future Of Collateral

7 hours ago
Algorand, OKEx

OKEx Announces Support for USDT and USDC Stablecoins on the Algorand Blockchain

13 hours ago
hashbon

How to Get 0% Commission for Accepting Crypto Payments – Meet Hashbon and Its Native Token

13 hours ago
payment gateway

Open Source vs. Ready-Made Payment Gateways: Which Crypto Processing Option Is Easier to Implement

14 hours ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

Oxygen Protocol to List OXY Tokens on BitMax

February 24, 2021

HOPR Hosts Global Token Launch Event on February 24th after First-Of-Its-Kind DAO Experiment

February 24, 2021

Egoras- a Decentralized Finance Ecosystem for Growing Markets!

February 23, 2021

Newsletter Signup


ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Gamble +

© 2020 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.