• The cryptocurrency 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.
• A breakout must occur before bulls or bears can act.
The cryptocurrency LINK/USD is in a long-term consolidation following an abrupt selloff. This means that both bulls and bears must have lost their patience, as such consolidations can often be interpreted as a sign of something major about to occur in the market.
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 can be seen as a bullish accomplishment for the coin. On the flip side, however, every bounce was not strong enough to break the previous lower high; thus indicating that bears are still in control of the situation.
The year 2023 brought with it a much-needed rally to the cryptocurrency market with Bitcoin leading the charge and translating its bull run into bullish movements on other coins including LINK/USD which rallied from $6 to $8 only to meet new sellers there – creating what appears to be a horizontal channel between these two points wherein until a breakout occurs both bulls and bears should wait before acting.
Bearish Flag Pattern?
Whenever a horizontal consolidation appears on a chart traders should look on the left side for trending conditions and if there was a bearish trend present then this could indicate that this horizontal consolidation might be part of a bearish flag pattern – though until either direction has broken out it’s impossible to tell whether this will happen or not. Bulls should wait for the price to break above $9.5, and ideally above $10 before going long while Bears should wait for prices below $6 before going short – both targeting measured moves based on the width of their respective channels upon breakout confirmation.
In conclusion LINK/USD has been consolidating for more than six months now due largely in part due to buyers appearing at lower prices thus preventing new lows from being made while simultaneously preventing any sort of significant upside movement from happening – leaving both Bulls and Bears at an impasse until either direction breaks out from its respective channel providing an opportunity for trading based off measured moves with each respective target set by each individual channels widths upon confirmation of breakouts occurring in either direction