A widely followed crypto analyst is saying that one Ethereum-based (ETH) altcoin is dangerously close to flipping bearish.
Pseudonymous crypto strategist Rekt Capital tells his 385,900 followers on the social media platform X that decentralized oracle provider Chainlink (LINK) has to hold a key support level of around $13.57 to remain in an uptrend.
“Chainlink has confirmed the breakout on the daily timeframe but is trying to retest the red box bottom. Make-or-break moment as a failed retest here will set the one-week up for bearish bias where the red box flips from old support to new resistance.”
LINK is trading for $13.53 at time of writing, down slightly in the last 24 hours.
Looking at Bitcoin, the trader says that based on historical price patterns, BTC could see a retracement of up to 40% ahead of its scheduled April halving event, when miners’ rewards are cut in half.
“It’s possible Bitcoin could drop up to 40% around its halving event. We’ve seen that in the past before. So right now we have to focus on these few phases. [There] is now a 42-day period that we have left before the pre-halving rally. A pre-halving rally tends to occur after a retracement in Bitcoin’s price action and then we see a lot of upside. A few weeks around the halving event itself we tend to see a pre-halving retrace and you can see that if we are to see history repeat a minus 40% pre-halving retrace could occur in the future.
In 2020, we saw a pre-halving retrace of 20%. And you can argue that this retrace was only 20% because we saw a major crash in the pre-halving period. So if we get a deep retrace over these next 40 days, does that then mean that we’ll have a shallower retrace around the halving event itself? And if we see a shallow retrace, does that mean we’ll have a deeper retrace in the pre-halving retrace period?”
Bitcoin is trading for $46,804 at time of writing, up nearly 4% in the last 24 hours.
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Sergey Nivens
