Although Chainlink has been one of the most bullish cryptocurrencies throughout 2019 and 2020, its short-term price action has lagged against that of Bitcoin and many of its other peers.
The crypto is flashing some signs of immense short-term weakness after its bullish divergence was “destroyed,” leading some analysts to now watch for a significant pullback.
This potential decline could result in especially notable losses against its Bitcoin trading pair, but could be closely followed by another notable uptrend.
Chainlink Shows Signs of Weakness as Analysts Watch for a Movement to Key Support
At the time of writing, Chainlink is trading down just under 3% at its current price of $3.71, marking a notable decline from daily highs of nearly $4.00 that were set overnight.
LINK has also declined nearly 6% against its Bitcoin trading pair today, severely underperforming the benchmark crypto as it begins stabilizing within the upper-$8,000 region.
Analysts anticipate this weakness to persist in the near-term, as one pseudonymous trader explained in a recent tweet that previous bullish divergence that was bolstering Chainlink’s buyers has since been “destroyed,” thus opening the gates for further downside.
“Well, the bullish divergence got destroyed last night… Still thinking we’ll see a decent bounce on LINK soon,” he stated while pointing to support at 0.0004 BTC and 0.00036 BTC.
Image Courtesy of Crypto Michael
Both of these support levels sit well below its current price of 0.000423 BTC, and continued weakness against Bitcoin could create some serious drag that also leads its USD trading pair to decline lower.
Analysts Concur: Short-Term Retrace Likely to Lead LINK Lower 
Others are offering similar short-term targets for the cryptocurrency while looking towards its BTC trading pair.
One such analyst explained that the two key support levels he is watching sit at roughly 0.00037 and 0.000315, with a decline below the latter level being enough to invalidate its mid-term strength.
“Not all heroes can break rising wedges upwards. Ultimate long entry would ‘level A’ also 0.786 of latest price structure invalidation below,” he said while offering a chart showing the rising wedge that sparked this decline.
Image Courtesy of Teddy
Another trader offered similar short-term downside targets, but he emphasized that Chainlink’s macro outlook is still incredibly bright.
“LINK on a macro is level is a bullish chart without a doubt. But short term we’ll probably see a retrace. Rounded top and confirmed sell signal on The Alpha,” he explained, referencing the chart and indicator seen below.
Image Courtesy of Byzantine General
As long as buyers step up and defend these levels, it is highly probable that Chainlink’s intense technical strength seen throughout the past year will be enough to continue pushing it higher.
This future uptrend could also be further bolstered by the growing strength seen across the aggregated market.
Featured image from Unplash.
Source: News BTC
Original Post: Chainlink Nears Key Support After Being Battered by Overnight Decline

Bitcoin has seen some immense bullishness throughout the past couple of days, with the benchmark cryptocurrency incurring a notable uptrend that allowed it to climb from lows of $7,700 to highs of $9,500.
This upwards momentum has marked a significant extension of that which was first incurred when BTC dipped to lows of $3,800 in mid-March, and the crypto has now erased virtually all of the losses that were incurred during this meltdown.
Analysts are now growing increasingly bullish on the cryptocurrency, explaining that its extreme strength in the face of a backdrop of global bearishness is allowing it to quickly becomes a higher version of gold.
There are, however, a few key hurdles Bitcoin must first jump over in order for this possibility to be validated.
Bitcoin’s Uptrend Highly Bullish Despite Retrace from Daily Highs; Claims Analyst
At the time of writing, Bitcoin is trading up just under 6% at its current price of $8,900, marking a massive climb from recent lows of $7,700 and only a slight retrace from daily highs of $9,500.
These highs were set last night when bulls overextended themselves, propelling the crypto before quickly losing their momentum.
Bitcoin’s ability to hold strong within the upper-$8,000 region does appear to be an overtly bullish sign, as it indicates that bulls have begun establishing some notable support within this area.
One analyst on Twitter explained why the benchmark crypto is still highly bullish even in the face of this morning’s retrace, pointing to its low open interest and only minor uptick in funding rates to justify this notion.
“Despite the morning crash, the BTC move was very bullish. Funding barely increased, aggregated OI didn’t increase by much, and Bitmex OI decreased. That speaks of the move driven by spot buyers rather than excessive leverage. The 50% retracement was welcome after +20% in 24H,” he explained.
BTC’s Strong Performance Against Global Markets Bolsters “Gold 2.0” Narrative
The “digital gold” narrative that many investors had subscribed to throughout the past few years is finally showing some signs of being validated, as Bitcoin is now trading up significantly against virtually all major assets.
Another respected analyst mused this narrative’s validation in a recent tweet, explaining that all BTC needs to do now is capture more market-share, and then it will be well on its way to becoming a “higher beta gold 2.0.”
“Even with this recent correlation, Bitcoin is still making quite a case for itself as a higher beta gold 2.0. All it needs to do is capture a bit more market-share. I think over the next 10 year period it is one of the best performing assets,” he explained.
Image Courtesy of Skew
If this trend of outperformance in spite of the global turbulence persists, BTC could quickly validate that it is largely decoupled from the traditional markets.
Featured image from Unplash.
Source: News BTC
Original Post: Bitcoin Shaping up to be a “Higher Gold 2.0” as Bullishness Grows