LINK/BTC: Imminent Breakout Analysis - 1D, 1H

In this post, I'll be providing an analysis on Chainlink (LINK), shedding light on its daily and hourly chart through technical analysis.

Daily Chart Analysis
- To begin with, the daily chart is on the left, and the hourly on the right
- The daily chart demonstrates that prices are trading within a descending channel, forming lower highs and lower lows
- The Relative Strength Index (RSI) is at neutral levels, showing signs of a potential breakout
- The Moving Average Convergence Divergence (MACD) is forming a potential death cross, but has not provided confirmation yet
- We can interpret the current setup as a consolidation phase of a bullish flag pattern
- Should we see prices break through the upper channel resistance, we could potentially expect another leg up to 0.002btc

Hourly Chart Analysis
- Zooming in on the hourly, we see clearer signs of bullishness
- Prices are forming an ascending triangle pattern, in which the tops of the pattern are rejected at 0.000894 btc levels, while higher lows are formed
- The RSI is also in an uptrend, forming higher lows as a sign of momentum building up
- Based on the ascending triangle pattern, we can count Elliott triangle waves (ABCDE)
- This wave count shows that a breakout through the triangle pattern is very imminent
- The 100 Simple Moving Average (SMA) on the hourly chart is a good reference of support/resistance zones.

You can check out my other analysis on Waves (WAVES) which had a very similar setup: an ascending triangle within a descending parallel channel.

Conclusion
Chainlink seems like it's headed to retest previous highs as indicators and bullish pattern setups demonstrate potentiality for a breakout.
However as always, don't predict the market. Take it by levels, and play by probabilities.

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