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Chainlink Price Action Coming to a Critical Juncture as Macro Meets Micro

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Chainlink Price Action Coming to a Critical Juncture as Macro Meets Micro

Whether it’s cryptocurrencies, commodities, or stocks nothing is immune to market cycles and Chainlink is another one to show us that. Link has been in a bull market since December 17th, 2018 in which it has continued to make higher highs and lows on the macro. Soaring to staggering heights in a short time in value going from .20c to $4.54 on June 29th climbing over 2,000% whilst outpacing the rest of the market.

Chainlink, Market Structure, 2018, 2019, Link
Chainlink Market Structure since 2018

Since it’s highs it has fallen 60% from 4.54 to $1.80 at the time of writing. Keep in mind this is the micro structure and as seen below it still has not taken out the last low prior to it’s parabolic advance up. Thus we can assume the micro trend is bearish, and macro is bullish as long as it stays intact.

In 2018 the yearly high was approximately $1.53 where it was swiftly rejected and eventually would work it’s way down range bound for the better part of a year. Early 2019 Chainlink begun to make it’s first series of higher highs and lows and again reached the 2018 pivot where it was met with another strong rejection. However bulls were able to buy it back up, break the all time high at the time with volume and then retest in quick succession bringing out position traders looking for price discovery. It has an electrifying run when the public participation stage brought it up to the high of 4.54 before entering distribution.

Link, Chainlink, Structure
Link has remained bullish in 2019

It’s important to note the structure on the chart. We can see when the red line is touched that each time there is a lot of liquidity based on the strength of the move off the pivot. This line also represents where the the last higher low was prior to the run up. This is the battle ground that must be defended if bulls are to keep the bullish structure in place in the coming weeks and months. We are at a key inflection point that will decide the future trend. If the Bulls can defend that support then we can expect a move back towards 2.07. Any move taking out the last lower high on the macro trend should mean continuation to the upside. A loss of 1.53 would be extremely bearish, and hint at a move much lower.

1929 Stuck Bubble, 2000 Dotcom, 2017 Bitcoin
A comparison of the various bubbles over the years

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About Pentoshi

Pentoshi is a macro trend trader who specializes in price action technical analysis utilizing high time frame pivots. A full time Crypto trader who is now directing focus on trading education.

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Pentoshi
Pentoshi is a macro trend trader who specializes in price action technical analysis utilizing high time frame pivots. A full time Crypto trader who is now directing focus on trading education.

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