Trade Recommendation: ChainLink
ChainLink (LINK/BTC) has been in an uptrend ever since it took out resistance of 0.00006 on October 23, 2018. The uptrend drove the market to an all time high of 0.000158 on January 22, 2019. ChainLink has been correcting since, which has led many to wonder whether the market is in bear territory. It would be premature to make that call because the market is respecting a key support level.
Technical analysis shows that LINK/BTC is preserving support of 0.000093. This view comes after the market refused to go below that level on April 11th.
Now, 0.000093 is a strong demand area. That’s because this price level used to be ChainLink’s toughest resistance. From October 2018 to January 2019, the market struggled big time to breach that level. It took the largest volume of ChainLink’s history on Binance to finally take out 0.000093. Thus, we can expect bulls to protect their massive investment.
Also, the 200-day moving average (MA) is crawling around that area. It will serve as an additional support and help keep ChainLink above 0.000093.
The strategy is to buy as close to 0.000093 as possible. As long as bulls stay above this level, LINK/BTC will likely rally to our targets of 0.00012 and 0.000135.
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 0.00009761 on Binance.
Summary of Strategy
Buy: As close to 0.000093 as possible.
Targets: 0.00012 and 0.00013.
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.