Chainlink bottomed at 10,361 sat. and jumped upwards to 13,587 sat. right after. This line is very important because this reversal is lining up with 1st smaller wave bottom, which implays that Link is (or can be) in 5-waves of wave C correction. That reversal is also 200dMA resistance line on 2h chart, which Link failed in crossing. That's why I'm leaning towards further correction.
Link is now (probably) in 4th wave of bigger wave C. If purple support line of this triangle formation gonna hold the price, then it's very likely that we will see a smaller wave C (to around 13,000 sat.) then it will enter smaller 5-waves movement.
On a bigger scale, we have a big Head And Shoulders formation.
Left shoulder – January 15th (big volume)
Head – January 22nd (smaller volume)
Right shoulder – January 29th
Neck line is at a tricky angle and the target for that bearish formation is set at around 8157 sat. Volume in HS formation is very important, and without that volume confirmation we are left with just 3 random tops.
There is a possibility of trend reversal at 10,600 – 10,000 satoshi. That level is (more or less) a target of Double Top bearish formation, which was formed before HnS. One top is at the left shoulder and the second with lesser volume is at the head. That 10,600 – 10,000 sat area is also Fibonacci important reversal lvl. I noticed that the second big correction is often at 127,20 – 141,40% of the previous one. And first one was from November 15th till December 7th.
IF 1 - the price will bounce upwards from that 10,600-10,000 level and Volume will give us confirmation (selloff smaller than that from January 28th) Link could be in bullish Double Bottom formation, and it will enter another bullrun period.
IF 2 – formerly mentioned Support lines/areas wont hold themselfs, I would aim for 8100 sat. Bottom. At this level Link has big trend-support line, and 200dMA on daily chart, pretty close to it. That 200dMA on daily gave us a heads up (when crossed) that Link entered bullish trend back in September 18th .
IF 3 – Link will cross upper purple line of that Triangle Formation, and 200dMA on 2hour chart (which is right after that line), that whole analysys might be no longer valid.
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I’m not a certified financial advisor nor a certified financial analyst. The contents posted by me are for informational and entertainment purposes only.
Link is now (probably) in 4th wave of bigger wave C. If purple support line of this triangle formation gonna hold the price, then it's very likely that we will see a smaller wave C (to around 13,000 sat.) then it will enter smaller 5-waves movement.
On a bigger scale, we have a big Head And Shoulders formation.
Left shoulder – January 15th (big volume)
Head – January 22nd (smaller volume)
Right shoulder – January 29th
Neck line is at a tricky angle and the target for that bearish formation is set at around 8157 sat. Volume in HS formation is very important, and without that volume confirmation we are left with just 3 random tops.
There is a possibility of trend reversal at 10,600 – 10,000 satoshi. That level is (more or less) a target of Double Top bearish formation, which was formed before HnS. One top is at the left shoulder and the second with lesser volume is at the head. That 10,600 – 10,000 sat area is also Fibonacci important reversal lvl. I noticed that the second big correction is often at 127,20 – 141,40% of the previous one. And first one was from November 15th till December 7th.
IF 1 - the price will bounce upwards from that 10,600-10,000 level and Volume will give us confirmation (selloff smaller than that from January 28th) Link could be in bullish Double Bottom formation, and it will enter another bullrun period.
IF 2 – formerly mentioned Support lines/areas wont hold themselfs, I would aim for 8100 sat. Bottom. At this level Link has big trend-support line, and 200dMA on daily chart, pretty close to it. That 200dMA on daily gave us a heads up (when crossed) that Link entered bullish trend back in September 18th .
IF 3 – Link will cross upper purple line of that Triangle Formation, and 200dMA on 2hour chart (which is right after that line), that whole analysys might be no longer valid.
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I’m not a certified financial advisor nor a certified financial analyst. The contents posted by me are for informational and entertainment purposes only.