Chainlink (LINK) is one of the two cryptocurrencies that demonstrate a great correlation to the price of bitcoin. With just a day to the much-anticipated bitcoin blockchain reward halving.
LINK technicals indicate that the price of LINK declines whenever the price of BTC plunges. And its price rises much further whenever BTC price is rising.
As of yesterday, May 29, 2020, 23:14 +0100 UTC when the price of BTC surged temporarily to $9,500 having only recently crossed the resistance at $9.4k, LINK was seen to show great correlation as its price surged towards the support level at $3.9
LINK Technical Analysis
The price of LINK has been struggling within close limits as BTC also struggles to make any movement in a specific direction.
LINK started its 48-hour price action at $3.80 level. Thereafter, the price seemed to flap into a period of retracement which saw the price correcting towards the 23.6 Fibonacci retracement level. The price lowered to $3.78 and consolidated alongside BTC to an extent.
Prices are anticipated to be bullish in the imminent days as the 200-day MA whistles an uptrend. Nonetheless, it is much anticipated to retrace successfully to the 50.0 Fibonacci level before successfully going beyond $5. LINK builds clear support levels with the $3.90-3.98 area, as the resistance at $4.5-7 stays the key level to break.
As LINK becomes range-bound, an unstable price change can be anticipated to occur quickly. If the price tears above the $4.5 resistance level, this may trigger continuation towards the $4.60-5 areas, while a deterioration below the $3.90 level implies weakness and probable continuation towards $3.5 and possibly $3.2-3.0
According to the chart above, the price of LINK has established support at the earlier high of $4.0. If that support level keeps, it may activate the continuation of the bullish move.
Although highly anticipated, if LINK smashes through the $5 mark, this may encourage a move to $5.5, which is equal to a breakout of Bitcoin above $10,000 since Chainlink usually follows the movements of Bitcoin.
LINK Gains 10% Against BTC
The price of LINK has gained more than 10% against its BTC pair within the last two weeks but continues strong against the USD and other pairs. This is quite answerable particularly while it demonstrates a correlation to BTC.