LINK/USD Consolidation: When Will the Bullish Breakout Occur?

April 2, 2023 0 Comments

• LINK/USD has been consolidating for over six months, with neither bulls nor bears able to gain control.
• A bearish flag might be forming, and both buyers and sellers should wait for a breakout before taking action.
• The measured move of the horizontal channel is its width, so traders should target that on a breakout in either direction.

What Is Going On With LINK/USD?

LINK/USD has been consolidating for more than six months following an abrupt sell-off. Neither bulls nor bears have been able to take control of the market and buyers appear each time the price attempts to break below $6. Despite a rally from $6 to $8 in 2023, this was not enough to break above the previous lower high resistance level. This suggests that bears are still in control and that the market is evolving inside a horizontal channel.

Is There Any Clue About Its Future Direction?

Whenever a horizontal consolidation appears on a chart, technical traders should look towards earlier trends for clues about its future direction. In this case, there is evidence of a bearish trend which suggests that the current horizontal consolidation could form part of a bearish flag pattern. Alternatively, it could be carving out a bottom – but for this to be confirmed bulls would need to break above $9.5 or ideally above $10 first before going long.

How Can Traders Profit From This Situation?

The measured move of such horizontal channels is its width, so traders should target that on any breakout in either direction as it often precedes another big market move. Therefore, those looking for profits from this situation should focus on identifying an eventual breakout and then targeting the measured move accordingly with their trades.

What Is Chainlink?

Chainlink provides data to smart contracts on blockchain networks such as Ethereum and allows users access to various external data sources they may otherwise not have access too – allowing them greater flexibility when coding their smart contracts or applications built using them .

Conclusion

LINK/USD has been consolidating for more than six months without any clear indication of which direction it will eventually move in next – whether up or down – making it difficult for both buyers and sellers alike who must wait patiently until an eventual breakout occurs in order to make informed trading decisions based upon it’s subsequent movement thereafter.