• Chainlink provides data to smart contracts on the blockchain, and LINK/USD is in a long-term consolidation following an abrupt selloff.
• LINK did not make new lower lows in the second half of 2022, instead buyers appeared on every attempt to trade below $6.
• A horizontal channel has been forming, meaning both bulls and bears must wait for a breakout before acting.
LINK/USD: When Will This Consolidation End?
Consolidation After Abrupt Selloff
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. So that 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 Rally & Horizontal Channel Forming
2023 brought a much-needed rally to the cryptocurrency market which was reflected in bullish movements for other coins too like LINK/USD which rallied from $6 to $8 only to meet new sellers there. In other words, the price action evolves inside a horizontal channel and until a breakout occurs both bulls and bears should wait before acting as it could go nowhere otherwise and frustrate them both further.
Bearish Flag Pattern or Bottom Carving?
Whenever a horizontal consolidation appears on a chart technical traders should look at trending conditions prior as this could be part of bearish flag pattern or bottom carving if it breaks out above resistance at $9.5/$10 respectively with its measured move being equal with its width from end points of said channel or pattern .
In conclusion for either scenario (bearish flag pattern or bottom carving) bulls and bears should wait patiently for a breakout before entering any positions as this will likely determine which direction prices will take next – whether downwards or upwards depending on breakouts nature: above or below resistance respectively .