There’s a storm brewing in the world of cryptocurrencies, with Chainlink facing a make-or-break moment. According to a prominent crypto analyst, this Ethereum-based altcoin is teetering on the edge of a bearish flip. A key support level of around $13.57 needs to be maintained for the coin to continue its upward trajectory.
Chainlink’s Precarious Position
The decentralized oracle provider Chainlink, popularly known as LINK, is currently in a precarious situation. A recent breakout on the daily timeframe was confirmed, but the coin is now attempting to retest the bottom of the red box. This is a critical juncture, as a failed retest could trigger a bearish bias for the week, with the red box flipping from old support to new resistance.
At the time of writing, LINK is trading for $13.53, experiencing a slight dip in the last 24 hours.
Bitcoin’s Potential Retracement
Switching focus to Bitcoin, the same analyst predicts a potential retracement of up to 40% ahead of the scheduled April halving event. This event, which sees miners’ rewards halved, has historically triggered price fluctuations.
The possibility of a 40% drop in Bitcoin’s value around the halving event is not unfounded, as similar patterns have been observed in the past. Currently, Bitcoin is trading for $46,804, up nearly 4% in the last 24 hours.
Historical Patterns and Future Predictions
Historically, a pre-halving rally tends to follow a retracement in Bitcoin’s price action, leading to significant upside. However, a few weeks around the halving event, a pre-halving retrace usually occurs. If history repeats itself, a 40% pre-halving retrace could be on the horizon.
In 2020, a pre-halving retrace of 20% was observed. Some argue that this retrace was only 20% due to a major crash in the pre-halving period. Thus, a deep retrace over the next 40 days could potentially lead to a shallower retrace around the halving event.
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Please note: This article is not intended as investment advice. Always conduct thorough research before engaging in cryptocurrency trading.
