A few weeks ago I had this feeling LINK is following a typical bubble pattern. It was not believed, however it still is valid to me. We are at a crucial point however. Will LINK manage to get back to the mean? And possibly cross the 200MA again? Interesting. For now I am just studying this chart before taking a position.
I too think Link has some way down to go before taking another run. We just experienced a speculative bubble to 20$ and we're already back to 10$.
Zooming out to the weekly this is what can be seen (this is normally a daily chart but easier to see in a weekly format)
There are essentially 2 channels. The lower one is where Link spent most of it's time, always going up in the long term.
When it crosses the upper line of that lower channel, it goes into bubble mode. The first occurrence of this was in summer of last year. It ended up correcting about 62% right down to the 0.236 fib level within a couple weeks.
If history repeats itself, another 62% correction from the recent top sends it back down to the 0.236 fib level again. I'm looking for a buy opportunity around 70k satoshis personally.
2 possibilities:
1. We hold the middle trend line, which is good news
2. We break the middle trend line and go find support on the lower trendline
Time will tell...
Also crossing the middle trendline would mean it's not holding the 21 weekly which has been a strong support for link for 2 years!
Zooming out to the weekly this is what can be seen (this is normally a daily chart but easier to see in a weekly format)
There are essentially 2 channels. The lower one is where Link spent most of it's time, always going up in the long term.
When it crosses the upper line of that lower channel, it goes into bubble mode. The first occurrence of this was in summer of last year. It ended up correcting about 62% right down to the 0.236 fib level within a couple weeks.
If history repeats itself, another 62% correction from the recent top sends it back down to the 0.236 fib level again. I'm looking for a buy opportunity around 70k satoshis personally.
2 possibilities:
1. We hold the middle trend line, which is good news
2. We break the middle trend line and go find support on the lower trendline
Time will tell...
Also crossing the middle trendline would mean it's not holding the 21 weekly which has been a strong support for link for 2 years!