Breakout Ahead? LINK/USD Consolidation Could End Soon!
• The LINK/USD is in a long-term consolidation following an abrupt selloff.
• Bulls and bears must wait for a breakout before acting, as the market is likely to go nowhere until one of them takes control.
• A bearish flag might form, but bulls should wait for the price to break above $9.5, and ideally above $10, before going long.
The LINK/USD pair has been consolidating for more than six months following an abrupt selloff. Both bulls and bears must have lost their patience and are waiting for a breakout before taking action. Technical traders should look on the left side for trending conditions; if there is a bearish trend present, then this horizontal consolidation could be part of a bearish flag pattern.
Chainlink provides data to smart contracts on the blockchain, and LINK/USD is in a long-term consolidation following an abrupt selloff. Both bulls and bears must have lost their patience, but such consolidations are interesting to trade because they usually appear ahead of another big market move. Unlike other cryptocurrencies, LINK did not make new lower lows in the second half of 2022; instead buyers appeared on every attempt to trade below $6 which is a bullish accomplishment. On the flip side, every bounce was not strong enough to break the previous lower high; therefore bears appear to still be in control.
2023 Market Rally
2023 brought much needed rally to the cryptocurrency market with Bitcoin surging and its bullish price action translating into bullish movements on other coins too including LINK/USD which rallied from $6 to $8 only to meet new sellers there meaning that it continues its evolution inside a horizontal channel until a breakout takes place where either bulls or bears take control of the market direction.
Bearish Flag Pattern?
Whenever a horizontal consolidation appears on chart technical trader should look on left side for trending conditions: if there is bearish trend present then this horizontal consolidation could be part of bearish flag pattern otherwise it might be just carving bottom so bulls should wait for price break above $9.5 (ideally above $10) before going long while measured move of this channel would be its width itself so look out either way after breakout takes place as target will be measured move away from entry point in same direction as breakout took place at first instance itself
In conclusion both bulls and bears need to wait patiently until clear breakout occurs with volume confirmation so each one can enter trades accordingly targeting respective measured moves away from entry points respectively thus having clear risk reward ratio planned out beforehand itself rather than entering trades recklessly without proper plan or analysis leading them into loss making trades most of time eventually leading into overall losses