A widely respected cryptocurrency analyst has said that the Ethereum-based (ETH) altcoin is dangerously close to a bearish reversal.
Pseudonym: Cryptocurrency strategist Rekt Capital says It has 385,900 followers on social media platform
“Chainlink has confirmed a breakout on the daily time frame but is trying to retest the red box bottom. Here, the make-or-break moment of a failed retest would set up a week for bearish bias, with the red box changing from old support to new resistance.”
LINK is trading at $13.53 at the time of this writing and has fallen slightly over the past 24 hours.
Looking at Bitcoin, traders say that based on past price patterns, BTC could see a retracement of up to 40% ahead of the April halving event, when miners’ rewards are scheduled to be cut in half.
“There is a possibility that Bitcoin could fall by up to 40% around the halving. We’ve seen it in the past. So now we need to focus on these few steps. (There) There are now 42 days left until the rally before the halving. Pre-halving rallies tend to occur after Bitcoin’s price action retraces, and there is plenty of upside after that. A few weeks after a halving event we tend to see a pre-halving retracement, and if we see the record repeating itself we can see that a negative 40% halving retracement could occur in the future.
In 2020, we saw a 20% pre-halving retracement. And since we saw such a big drop in the period before the halving, it could be argued that this retracement was only 20%. So if we get a deep retracement over the next 40 days, does that mean we’ll get a shallower retracement around the halving event itself? And if we see a shallow retracement, does that mean we will have a deeper retracement during the retracement period before the halving?”
Bitcoin is trading at $46,804 at the time of writing, up nearly 4% in the last 24 hours.
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