The Bitcoin market has been rallying higher, at the time of writing, and inches closer to the $60K range. This sudden surge has also been pushing the value of altcoins higher in the market. Chainlink [LINK], although has been weakly correlated to Bitcoin, it has also been noting a surge.
At the time of writing, LINK was being traded at $ 29.26, while pushing through its immediate resistance at $28.93.
Chainlink [LINK] four-hour chart
Source: LINKUSD on TradingView
Chainlink [LINK] market has been indicating that the price trend had given rise to a descending channel, which was a bearish pattern. However, given the surge that was in progress in the market, the LINK price could see a strong uptrend in the mid-term.
Reasoning
The Bollinger Bands have widened to indicate the rise in volatility in the market. The price has been swinging higher than usual and has led LINK to surpass the resistance at $28.93 and move higher. This sudden swing in price was seeing the bulls take over the signal line slides under the candlesticks.
The 50 moving average which acted as resistance was now moving over the candlesticks and if the price continued its uptrend, the MA would slide under the price bars.
Whereas, the relative strength index was sloping towards the oversold zone. However, the unplanned volatility has caused RSI to bounce towards the equilibrium zone. The buying pressure was equalling the selling pressure in the market.
Crucial levels
Entry-level: $29.47
Take Profit: $31.10
Stop-level: $28.58
Risk to Reward: 1.84
Conclusion
The current LINK market was very volatile and may result in its price reaching $31. While the support remained at $28, if the price corrects, LINK may drop down to $27.65. Irrespective of the ongoing trend, a swing in the BTC market could impact the direction of the current price.
