Literally, you could hear the bitcoin hodlers (BTC) celebrating when the world’s largest whale publicly entered the market this week.
But while Bitcoin was heading towards $ 50,000, altcoin hodlers watched in horror as their portfolios started shrinking in terms of BTC.
But nevertheless, Elon’s pumping has possibly created a massive buying opportunity for many altcoins on the paired charts of BTC.
It seems like yesterday that Zeus Capital went short LINK while pumping from $ 10 to $ 20But this was in August 2020, when Bitcoin was trading at a meager $ 10,000.
In recent weeks, even though LINK has reached new all-time highs, The crypto space on Twitter has been jokingly calling LINK a stablecoin as it has been hovering around $ 25 for what seems like forever.
Even recently DOGE has turned it around in the market capitalization rankings. Not a good look for the “LINK marines”, who have been defeated by a meme … at the moment.
The trend is your friend
Starting with the LINK 1 hour chart, you’d be blind if you didn’t see the strong uptrend that LINK has been holding since early 2021.
At this time, The resistance of the middle channel on the LINK / USD chart is around $ 29 with a bullish target of around $ 34.
The upward movement has been so important in recent months that The next level of support if the bullish structure breaks can be seen around $ 17.20. However, an injustice would be being done to these lackluster goals as the bigger picture is being overlooked.. To understand it, just look at the UNI / BTC chart.
Uniswap Peaked After 100% Pullback Against BTC
One of the recent hits of 2021 is Uniswap, which has gone from under $ 3 to over $ 20 in a matter of weeks. It’s hard not to FOMO on coins that are tearing up the track this way, and with a lot of altcoins in price discovery, it’s hard to tell which currency to buy when looking at the USD chart.
But we can see a pattern on the charts of the BTC pair with a little help from the Fibonacci retracement tool to really see where the opportunity is, and right now Chainlink is screaming to buy.
LINK is currently on a fire sale
Moving on to the LINK / BTC chart, it is currently at 154% of its previous high in Bitcoin terms, hovering around $ 0.236.
LINK is not alone in this graphic. Many other currencies are exhibiting the same structure versus Bitcoin, and with every pump that Bitcoin has, the gap to the top is getting higher and higher.
With LINK currently trading at $ 27.50, this would put LINK’s price at $ 70 only to regain its previous level of pairing with Bitcoin., but that’s assuming Bitcoin is holding around its current level.
Bitcoin consolidation phase
It is inevitable that Bitcoin will push this bull market higher. However, with such a massive move this week, we can expect a period of consolidation.. During this phase, we can start to expect BTC earnings to flow into altcoins, thus perpetuating the altcoin boom cycle.
Right now, the $ 48,000 is acting as resistance in this channel for Bitcoin. This is the area to be overcome for the next big upward stretch, and every day the $ 100,000 for Bitcoin seems more inevitable.
But nevertheless, As it rests around $ 46,000, we can see a pullback to the mid-channel support level of $ 41,300, which would represent a drop of 11%. Also, do not rule out a 28% drop to $ 33,280, as this would continue to maintain a bullish structure.
Despite my general bullish bias for Bitcoin. If I am wondering which is more likely in the short term, $ 100,000 for Bitcoin or $ 70 for LINK? The answer to that question is easy to answer: marines to victory..
Heatmap data suggests $ 48,000 is the local cap
Moving on to the heatmap data in Tensorcharts, There are selling walls at $ 48,000, further reinforcing that it is not yet the time for Bitcoin to shine up to a six-figure price target., with large but not huge walls of purchase sitting between $ 43,000 and $ 44,000, respectively.
This leads me to believe that At the moment, we can expect a sideways price action for Bitcoin over the next few days, allowing LINK and other altcoins to catch up..
Key price levels for LINK
The next key level for LINK to break above is the $ 34 channel resistance, this would start to put Bitcoin’s paired Fibonacci levels as the most logical areas of resistance if it breaks out of this bullish ascending channel.
The fib levels on the BTC pair chart visualized on the 1-day USD chart give an idea of what to expect from LINK in the coming weeks., showing a key level around $ 36 to claim 0.382. This is followed by $ 43 to claim the 50% retracement, and around $ 48 to rest at 0.618, which I imagine will surpass the 100% retracement at $ 70 before resting at this level again.
As for LINK’s bearish potential, $ 25 appears to be the local low. Losing this would not be good for the bulls as it is a long way down to $ 17.20. However, from a technical standpoint, “just up” seems to be the play here for now.
Points of view and opinions expressed here are solely those of @officiallykeith and do not necessarily reflect the views of Cointelegraph. Every investment and commercial movement involves a risk. You must carry out your own research when making a decision.
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Chainlink hits new highs, but is LINK about to make another 150% parabolic move?