Long-Term Trade Recommendation: ChainLink
ChainLink (LINK/BTC) is one of the few altcoins that we are happy to hold for the long-term. It has shown tremendous resiliency after it started its uptrend in September 2018. Even though most cryptos are in a strong downtrend, ChainLink’s price continues to rise. Also, its uptrend looks healthy as sufficient time is given for correction and base building. These reasons give us the confidence to continue being bullish on the market.
Technical analysis shows that LINK/BTC has broken out of a falling wedge when it took out resistance of 0.000068 on December 18, 2018. This triggered a strong rally to 0.00009018 on December 20. While the rally faded, market participants managed to establish a bullish higher low setup of 0.000073.
This price action is bullish. It enabled LINK/BTC to create an inverse head and shoulders pattern on the daily chart. This pattern suggests the continuation of the uptrend. LINK/BTC will likely trade bullishly once it takes out the neckline at 0.000085.
However, it seems that the market is content on range trading between 0.000073 and 0.000085 for now. This gives you some time to set low bids.
The strategy is to buy as close to 0.000073 as possible. As long as ChainLink defends this higher low, bulls will likely gather the momentum to break out of the pattern and rally to our target of 0.00011. Take that out and the next target is 0.00012
The process may take less than a month.
Daily Chart of ChainLink/Bitcoin on Binance
As of this writing, the ChainLink/Bitcoin pair is trading at 0.00007645 on Binance.
Summary of Strategy
Buy: As close to 0.000073 as possible.
Targets: 0.00011 and 0.00012.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.