ChainLink Near Bottom of Current Range (Weekly Forecast)

ChainLink has continued its pullback, getting rejected from the 200 Week EMA earlier this week before drifting lower to under 0.0006 LINK/BTC. This is a bearish short-term pattern, of course. However, when you zoom out, this appears to be a significantly higher low as Link approaches the lower end of the current trading range around 0.0005 LINK/BTC.

Short-Term

Link, like other alts, will likely continue to slowly bleed in satoshis as capital rotates back into Bitcoin. As this happens, however, ChainLink will drift closer to support at the 0.0005 LINK/BTC level where buyers have stepped in on multiple occasions in 2021, and was significant resistance in H2 2020. This marks a relatively "safe" entry point for re-accumulation and DCAing. If our projections hold true, we are only about half way through this current bull market (maybe less), indicating disproportionate upside yet to come for BTC and alts alike. Though Link may have enjoyed a premature rally in mid-2020, it is not immune from future altseasons which typically follow BTC's eventual market-cycle blowoff tops, which we don't foresee until at least Q3 or more likely Q4 2021, or possibly even Q1 2022.

In the short-term, buying Link will likely be akin to "catching a falling knife," but over the medium-term, will likely be a value buy. Upside targets are well above 0.001 with 0.0015 being tagged less than a year ago and 0.002 possibly in play as a late-stage altseason target.

Support: 0.0005 LINK/BTC, 0.0004

Resistance: 200 Week & 50 Week EMA around 0.0006 LINK/BTC

Posted Using LeoFinance ^Beta