Chainlink has left Bitcoin strong lately despite its huge and devout community and continued fundamental growth.
This is not uncommon for crypto as it is often trending independently of the rest of the market and has seen some of its biggest rallies in the depths of the bear market in recent years.
The growth from a small ICO to a billion dollar project has been incredible and many still believe that its future is better than ever.
From a technical point of view, crypto has recently depreciated against Bitcoin due to its poor performance.
One trader notes that their BTC price could double and it would still just mark a bearish retest of a previous level of support.
This underperformance is not unique to Chainlink, as many other major cryptocurrencies have seen massive losses recently. Most of the capital is directed to Bitcoin and Ethereum as investors avoid smaller tokens.
Ultimately, however, there will be a capital rotation event away from BTC towards smaller altcoins, with tokens like Chainlink seeing a massive upward trend. This is one possibility that analysts believe is incredibly likely.
Chainlink continues to lose ground to Bitcoin as altcoins slide down
At the time of writing, Chainlink is trading a little over 4% at its current price of $ 11.28. It has also seriously lost ground to Bitcoin and is showing signs of immense weakness in its BTC trading pair.
The crypto has established the region as a strong support zone at lower $ 11.00, but its continued decline suggests that this level could break soon.
The weakness of the BTC trading pair could also stifle growth against the USD, so gaining a foothold against the benchmark crypto will be of crucial importance in the short term.
Analyst: LINK could see a sharp surge once the altcoin market recovers
An analyst pointed to Chainlink’s bitcoin trading pair to demonstrate how weak the cryptocurrency has been lately.
He notes that the longer it drops against BTC, the greater the potential for massive rebound once the aggregate altcoin market turns around.
“LINK: Link / BTC could double against BTC and it would still be just a bearish retest. Kind of crazy to think about. The more dumps there are, the more potential a long has if alts reappear. Until then, I just have to be patient. “
Image courtesy DonAlt. Source: LINKBTC on TradingView.
Bitcoin remains the market leader for now, and altcoins are unlikely to gain ground against it in the short term.
That could change by a cent, however, and capital will likely turn towards altcoins once it enters a longer period of consolidation.
Featured image from Unsplash. TradingView charts.
