Chainlink was the hottest crypto token by mid-2020. But when Bitcoin broke over $ 10,000 10,000 months ago, the altcoin’s uptrend against the top cryptocurrency was broken.
After a full 50% retracement of the rally against BTC, Chainlink is now “ready to proceed” according to a crypto analyst. This could mean the following for both cryptocurrencies in the coming days and weeks.
Links in the chain likely to continue as the crypto market catches fire
Chainlink is already up almost 15% over the course of the day today, and there are hours left to the end of the day. The move brought the altcoin to its highest point in USD value since its all-time high earlier this year.
Chainlink has been the top performer in the crypto market for the past two years. But once Bitcoin had its big breakout, the decentralized oracle token began to decline, retracing its epic rally.
Related reading | Shark Tank Investor Slams Bitcoin, Crypto: “Not an Institutional Product”
However, according to one analyst and his stance on the LINKBTC pair, the altcoin has declined but not out, and it is poised to continue its rally after a 50% regression against Bitcoin.
The Fibonacci retracements of 0.5 and 0.618 are often a critical point where reversals occur, and it is precisely there that the LINKBTC pair began to flip. Does this mean Chainlink is better than Bitcoin again, or is something else going on?
LINK outperformed BTC for almost two years. Could this trend continue from here? | Source: LINKBTC on TradingView.com
Does Bitcoin allow Altcoins to glow again?
At the height of the 2017 Bitcoin rally, the top cryptocurrency hit $ 20,000 and became too expensive for the average retail investor to buy a full BTC. This resulted in the investor class looking for altcoins that could one day follow in Bitcoin’s footsteps.
Ethereum, Litecoin, XRP and almost every other coin besides Bitcoin exploded in value but burst this year’s crypto bubble at the same time.
Related reading | Bitcoin Dominance Doji: Why 2021 could mean fate for altcoins
Crypto is bubbling up again, and this time it looks very different for Bitcoin, which is now being bought up by the rich with money.
And as Bitcoin is now returning to prices that are out of reach for the average investor, Altcoins are suddenly becoming much more attractive again.
After such a huge surge in Chainlink, a collapse of its parabola should have resulted in a correction of up to 80%, much like Bitcoin did during its bear market. But because Bitcoin and the rest of the crypto are so bullish, the rising tide is lifting the Chainlink boat too.
It remains to be seen how buoyant the altcoin is from here.
Featured image from deposit photos, charts from TradingView.com