Chainlink is a well-known cryptocurrency that has been around since 2017. During the current bull market of 2019, it has been one of the higher risers, at one point having increased by a massive 1750%.
The LINK price is currently trading at $2.5, after reaching a low of $1.5 on September 27.
Crypto investor @nebraskangooner noted a similarity between the current LINK price action and that of Bitcoin in 2018.
LINK is one of my favorite assets for long term.
I've been slowly adding(not enough) and will continue to add it to my long term portfolio on dips.
With the strength it showed in 2018 it's a no brainer for me.
I bought some more yesterday on the dip.($2.16) pic.twitter.com/ueNdcszAdR
— NebraskanGooner📈 (@nebraskangooner) October 7, 2019
He compared the July LINK high to that of December 2018 for Bitcoin.
In this case, the aforementioned September 27 LINK low coincides with Bitcoin’s December 2018 low of $3200.
At first glance, we can definitely see similarities between the LINK price and that of BTC.
However, it is worth mentioning that the market cycles of every coin have similarities since they usually follow the same wave count.
However, when we look at the retracement levels, LINK has not yet reached those of Bitcoin.
Using a Fibonacci retracement tool, we can see that LINK has yet to reach the 0.382 fib level of the entire drop.
In contrast, BTC reached the 0.618 level before initiating the current decrease.
A similar retracement for LINK would take it all the way to $3.5, a 40% increase from the current price.
However, the current volume level pales in comparison to that of the upward move.
This makes us believe that the retracement will be weak and LINK will eventually decrease to the support area at $1.5.
Do you think LINK will reach the 0.618 fib level? What about the 0.5 level? Let us know in the comments below.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images are courtesy of Shutterstock, TradingView.