- LINK/USD: Chainlink provides data to smart contracts on the blockchain, and LINK/USD is in a long-term consolidation following an abrupt selloff.
- Bearish Flag Pattern: LINK/USD has consolidated for more than six months and a bearish flag might form. Bulls and bears must wait for a breakout before acting.
- Breakout Needed: The market needs a breakout above $9.5 or below $6 in order to make its next move.
Overview of LINK/USD
Chainlink provides data to smart contracts on the blockchain, and LINK/USD is in a long-term consolidation following an abrupt selloff. Both bulls and bears must have lost their patience, but such consolidations are interesting to trade because they usually appear ahead of another big market move.
Analysis of Bearish Flag Pattern
Unlike other cryptocurrencies, LINK did not make new lower lows in the second half of 2022. Instead, buyers appeared on every attempt to trade below $6. So that is a bullish accomplishment. On the flip side, every bounce was not strong enough to break the previous lower high. Therefore, bears appear to still be in control. 2023 brought a much-needed rally to the cryptocurrency market which translated into bullish movements on other coins too; however, LINK/USD rallied from $6 to $8 only to meet new sellers there, forming a horizontal channel with no clear direction yet.
Outlook for Breakout
Both bulls and bears should wait for a breakout before acting as it will determine which direction the price will go next – either way indicating where it will find support or resistance levels along its journey. For now, traders look forward to seeing if the horizontal channel indicates anything such as whether it could be part of a bearish flag pattern or if it is carving out at bottom instead – both scenarios needing confirmation from an actual breakout above $9.5 or below $6 respectively for either case scenario’s measured move target destination along its journey towards potential profits..
In conclusion, traders should watch out for any signs confirming the horizontal channel’s formation indication – unable confidently act until then by either waiting patiently or trading cautiously depending upon one’s preferred risk appetite strategy when speculating upon any potential upcoming trend reversal potential opportunities within this crypto pair asset class presently undergoing consolidation process until further notice..
In conclusion, traders should wait patiently until there is confirmation of what happens inside this current horizontal channel before taking action; whether that means trading cautiously with smaller positions size pending further clarity about this crypto pair asset class or waiting patiently until further developments take place around this coin pairing market remains uncertain at present time..