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Michael Van De Poppe

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Bitcoin has been clinging to the key $10,000 BTC price level all weekend as technical factors point to a short-term relief rally.

Last weekend was incredibly rough for most cryptocurrency investors as massive sell-offs occurred. The price of Bitcoin (BTC) dipped below $10,000 several times but seems to have found short-term support at this level.

The primary question for the markets is whether a relief rally is around the corner or further downside movement is expected.

Let’s take a look at the charts to determine what might happen next.

Bitcoin clings to $10,000 as a psychological support level

BTC/USDT 1-day chart. Source: TradingView

The psychological barrier at $10,000 is currently acting as support, indicating that a short-term relief bounce could be on the horizon. A clear breakdown of the $11,200 area triggered a massive sell-off across the markets.

This drop led toward the primary support levels around the CME gap, where $10,000 is a significant support level as well as $9,600.

As the recent market movements were volatile, multiple CME gaps can be seen on the daily chart.

BTC/USD CME 1-day chart. Source: TradingView

The daily chart of the CME futures on Bitcoin is now showing two CME gaps. The obvious one, between $9,650 and $9,950, is still unfilled.

However, as the markets have been volatile during the weekend, a new CME gap was created above the current price. This one is between $10,450 and $10,600 and will likely also be filled in the near term.

These Bitcoin futures gaps are significant because the majority of the traders are looking at them as an indicator. Since many traders eye these levels, these gaps tend to get filled most of the time.

As such, they are an additional tool to define support and resistance levels, though they shouldn’t be used as the only factor when trading.

Lower timeframe charts hint at double-bottom

BTC/USDT 2-hour chart. Source: TradingView

A potential trend reversal is on the horizon, though BTC/USD still appears to be on shaky ground. The blue box indicates a new lower low, which was needed to confirm a bullish divergence.

However, the market has not shown massive strength since the bounce from below $10,000, reaching only $10,300. This bounce came back toward the support region (around the green box), where a potential higher low can now be established.

The next step for a potential reversal would be a new higher high above $10,300, which will be further described in the next section.

A potential scenario for Bitcoin price

BTC/USDT 2-hour scenario chart. Source: TradingView

A very likely scenario would be a short-term relief rally. There are two possible cases in which this can occur.

The first one can be seen in the chart, where the $10,000 area must hold as support, forming a bottom construction.

The next step after holding the $10,000 area would then be to test $10,600 and $10,800–$11,000. However, an apparent breakthrough of $10,800–$11,000 in one go is very unlikely upon the first attempt. Crucial areas rarely break in one try. Therefore, a rejection should then be expected.

The second case for forming a local bottom involves the $10,000 level failing to hold.

However, the price would then only drop to the CME gap at $9,600, the second level of support. If the price of BTC bounces from the $9,600 area and then regains $10,000, an identical scenario to the one above can then be played out.

Author: Michaël Van De Poppe

Source: Coin Telegraph: Bitcoin price charts hint at double-bottom, relief rally to $10,800

Chainlink overshot the previous bullish target, hitting a new all-time high of $8.40, but how much higher can LINK’s price really go?

As Bitcoin’s (BTC) price continues to trade in a tightening range, the altcoin market has been pushing higher each week, and the most recent surge has come from Chainlink (LINK).

After breaking above the $5 level, LINK’s price surged nearly 100% in a matter of days and ended by making a new all-time high at $8.40. Through this massive push, LINK surpassed EOS and Crypto.com (CRO) to claim a spot among the top ten cryptocurrencies listed on CoinMarketCap.

Investors are now curious to see if Tezos (XTZ) will continue to follow LINK, and there are expectations that other altcoins will also follow LINK’s upward trajectory.

What pushed LINK’s price to $8.50?

LINK has proven to be one of the strongest movers in the cryptocurrency markets of recent years. This was proved once again as the cryptocurrency broke above the previous all-time high of $5 and surged with 85% toward $8.50.

LINK/USDT one-day chart. Source: TradingView

In a previous article, a target of $7.00–$7.25 was established using the Fibonacci extension tool. However, LINK overshot that target by a mile.

As the chart shows, the rally might be temporarily over, as sellers are stepping in, but this will only be confirmed if the daily candle closes as shown on the chart above. Currently, the candle shows a giant wick on the upside, indicating that there’s more sell than buy pressure.

Aside from the candle, such a giant move is due for a corrective move, so it is good to review the levels to watch for potential support.

LINK/USDT one-day chart. Source: TradingView

The 1-day chart is showing clear support levels. One of them is found between $6 and $6.50. The previous resistance at $6.57 can be confirmed as support, which would suit a renewed test of the $8.50 resistance level.

However, a clearer signal would be a corrective move toward the $5 level, as that used to be a significant resistance zone before the massive breakout occurred.

LINK/USDT four-hour chart. Source: TradingView

The four-hour chart shows a bright support/resistance flip of the $5.70 level, which caused continuation and the price to accelerate toward $8.50.

The most likely scenario is a test of the previous high for support; in this case, the $6.50–$6.60 level. A potential wick toward the $6.20 level is an area to watch for.

If this zone holds, a renewed test of the highs at $8.50 is likely to occur. If the $6.50 level is lost, further downward pressure is likely to occur on the markets with a potential retest of the $5 level.

LINK/BTC pair breaks out

LINK/BTC one-day chart. Source: TradingView

The LINK/BTC pair shows a massive breakout as well. The resistance zone at 0.00055000 sats was tested several times before the breakout occurred.

This price action is actually quite similar to the resistance zone of Bitcoin that is encountering at $10,000 to $10,500. As the saying goes, the more often a resistance gets tested, the weaker it becomes.

In the case of Bitcoin, the resistance zone at $10,000 to $10,500 has been a tough area to surmount for a year already, and for LINK, the 0.00055000 sats barrier has been a resistance zone for seven months.

As the breakthrough of the resistance zone occurred, massive acceleration took place, but the chart is showing signs of overextension on the upside. For this reason, a corrective motion is likely to occur.

In that case, the potential levels of interest should be the previous resistance at 0.00055000 sats and the area between 0.00065000–0.00066500 sats.

When Chainlink moves, Tezos follows

XTZ/USDT one-day chart. Source: TradingView

Once Chainlink moves, Tezos tends to follow. However, in the previous months, Tezos has been lagging heavily, but the price finally made a strong move over the weekend.

XTZ/USDT has been showing strength in the previous days and currently faces the final hurdle before a new all-time high.

The pair secured support at the $2.40 level before continuation and acceleration toward $3 occurred. The next step to watch for is a test of the $2.70–$2.77 level for support.

If that level sustains support, it’s likely that XTZ/USDT will break through the $3 barrier and test the all-time high.

The $3 resistance area has been tested three times now, and it’s possible that another test of the resistance zone will see the price finally push through it.

If XTZ/USDT breaks above $3, it’s assumed we’ll start accelerating and get a similar move to Chainlink. And that similar move means a new all-time high.

XTZ/BTC breaks above the 100-day moving average

XTZ/BTC one-day chart. Source: TradingView

The XTZ/BTC pair is also showing strength, as it recently broke above the 100-day MA. This is also the case with the XTZ/USDT pair. If the previous resistance area at 0.00002900–0.00002950 sats continues to hold for support, a support/resistance flip will be achieved.

Once this support/resistance flip is confirmed, continuation to the upside is likely to occur, and traders will set their targets around the all-time high zone around 0.00003700–0.00003800 sats.

If Tezos manages to break through the all-time high levels, the sky’s the limit and savvy traders can look to the Fibonacci extensions in order to determine new targets.

Author: Michaël Van De Poppe

Source: Coin Telegraph: Chainlink (LINK) Becomes the ‘Tesla’ of Cryptocurrency — What’s Next?

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