Until mid-2020, Chainlink was the most popular crypto token out there. But when Bitcoin broke above $ 10,000 months ago, the altcoinThe upward trend against the top cryptocurrency was broken.
After a full 50% return from the rally against BTC, Chainlink is now “ready to continue,” said a crypto analyst. Here’s what that could mean for both cryptocurrencies in the days and weeks ahead.
Chainlink Continuation Likely as the crypto market catches fire
Chainlink is already up nearly 15% during the day today, with hours to go before the daily closure. The move sent the altcoin to its highest point in USD value since its all-time high was reached earlier this year.
Chainlink has been the top performer of the crypto market for the past two years. But once Bitcoin had its big break, the decentralized oracle token began to sink and regain its epic rally.
The 0.5 and 0.618 Fibonacci retracements levels often act as a critical point where reversals happen and that’s exactly where the LINKBTC pair started to flip. Does this mean that Chainlink is outperforming Bitcoin again or is something else going on?
LINK outperformed BTC for nearly two years. Could that trend continue from here? | Source: LINKBTC on TradingView.com
Will Bitcoin Make Altcoins Shine Again?
At the height of the 2017 Bitcoin rally, the best cryptocurrency reached $ 20,000 and became too expensive for the average retail investor to buy one full BTC. It led the investor class to look for altcoins that could one day follow in Bitcoin’s footsteps.
Ethereum, Litecoin, XRP and just about any other mint aside from Bitcoin exploded in value but shot the crypto bubble of that year at the same time.
Related reading | Bitcoin Dominance Doji: Why 2021 Could Be Doom for Altcoins
Crypto is bubbling up again, and this time things are very different for Bitcoin, which is now being bought up by the wealthy with money left.
And as Bitcoin returns to prices unattainable for the average investor, altcoins suddenly become much more attractive again.
After such a massive rise in Chainlink, one breakdown of its parabola should have resulted in an 80% correction, just as Bitcoin suffered during its bear market. But because Bitcoin and the rest of crypto is so bullish, the rising tide is lifting the Chainlink boat as well.
How floating the altcoin is from here, remains to be seen.
Featured image from Deposit Photos, Charts from TradingView.com