You could literally hear Bitcoin (BTC) hodlers cheering from the rooftops as the world’s largest whale publicly hit the market this week.
But as Bitcoin screamed towards $ 50,000, altcoin hodlers watched in horror as their portfolios shrank in terms of BTC.
However, the Elon Pump may have created a massive buying opportunity for many altcoins on the BTC paired charts. One coin in particular has let the site down, namely LINK.
It seems like Zeus Capital received a short sale from LINK just yesterday when it jumped from $ 10 to $ 20, but that was August 2020 when Bitcoin was trading at the low of $ 10,000.
In the past few weeks, even though LINK has hit new highs, the Twitterverse has jokingly dubbed LINK a stablecoin as it hovers around $ 25 forever.
It was even flipped recently by DOGE on the market capitalization ratings. Not a good look for the “LINK Marines” who got hit by a meme … for now.
The trend is your friend
LINK / USD 1 hour chart. Source: TradingView
If you start on the 1 hour chart for LINK, you will be blind unless you see the solid uptrend that LINK has been holding since early 2021.
Currently, the mid-channel resistance on the LINK / USD chart is at $ 29 with an upside target of $ 34.
The uptrend has been so significant over the past few months that if the bullish structure breaks, the next level of support can be seen at around $ 17.20. However, you would be wronging yourself with these mediocre goals as you would miss the big picture. To understand this, all you have to do is look at the UNI / BTC chart.
Uniswap was outperformed after a 100% retracement against BTC
UNI / BTC 1-day chart. Source: TradingView
One of the most recent success stories of 2021 is Uniswap, which went from under $ 3 to over $ 20 in just a few weeks. It’s hard not to get caught up in coins ripping the runway up this way, and with many alts in pricing, it’s hard to know which coin to buy by looking at the USD pair chart.
However, with a little help from the Fibonacci retracement tool, we can spot a pattern in the BTC pair charts to really see where the chance lies – and right now, Chainlink is crying out to buy.
UNI sat at 0.236 for about six weeks before breaking out of its own $ 3 stablecoin levels, and it is now above $ 20. Meanwhile, LINK has only been in its 0.236 pit stop for four weeks.
LINK is currently in a fire sale
LINK / BTC 1-day chart. Source: TradingView
When transitioning to the LINK / BTC chart, it is currently 154% off its previous Bitcoin high and stands at 0.236.
LINK is not alone in this table. Many other coins have the same structure as Bitcoin, and with every pump that Bitcoin has, the gap to the top increases.
Since LINK is currently trading at $ 27.50, LINK would be priced at $ 70 just to get back to previous paired bitcoin levels. However, this assumes that Bitcoin remains at the current level.
Bitcoin Consolidation Phase
BTC / USD 1-DAY chart. Source: TradingView
It is inevitable that Bitcoin will drive this bull market higher. However, with such a massive move this week, we can expect a period of consolidation. During this phase, we can expect the expected BTC gains to flow into alts, thus continuing the altcoin boom cycle.
Currently, $ 48,000 acts as a resistor for Bitcoin in this channel. This is the zone to stop by for the next big leg, and every day, $ 100,000 Bitcoin seems to be becoming more and more inevitable.
However, since it’s $ 46,000, we can see that a drop in mid-channel support of $ 41,300 would mean an 11% decrease. Additionally, a 28% decline to $ 33,280 shouldn’t be ruled out as it would continue to maintain a bullish structure.
Despite my overall bullish bias on Bitcoin. When I wonder which is more likely in the short term, $ 100,000 Bitcoin or $ 70 LINK? The answer to this question is easy to answer: Marines for Victory.
Heat map data suggests that $ 48,000 is the local top
BTC USD 1-hour heat map Source: Tensortcharts
If we move on to the heat map data on tensor charts, there are selling walls for $ 48,000, which further confirms that it is not yet time for Bitcoin to hit a six-digit price target with large but not huge buying walls of between 43,000 and $ 44,000. respectively.
This leads me to believe that for the time being we can expect some sideways price movements from Bitcoin for the next few days so that LINK and other alts can catch up.
Important price levels for LINK
LINK / USD 1-day chart. Source: TradingView
The next key level for LINK is the $ 34 channel resistance. This would result in the Bitcoin paired Fibonacci levels being considered the most logical areas of resistance in the event they break out of this bullish ascending channel.
LINK / USD 1-day chart. Source: TradingView
The Fib levels on the BTC pairs chart, shown on the 1-day USD pair charts, give a taste of what to expect from LINK in the coming weeks. Then $ 43 to claim the 50% retracement and roughly $ 48 to rest on the 0.618 which I can imagine topping the 100% retrac at $ 70 before going back to that level leans back.
As for LINK’s downside potential, $ 25 appears to be the local low. Losing this wouldn’t be good for the bulls as it is a long way to go to $ 17.20. From a technical point of view, the game seems to be “only on top” for now.
The views and opinions expressed herein are solely those of @officiallykeith and do not necessarily reflect the views of Cointelegraph. Every investment and trading step is associated with risks. You should do your own research when making a decision.