But as Bitcoin screamed toward $50,000, altcoin hodlers looked on in horror as their portfolios began shrinking in terms of BTC.
However, the Elon pump has possibly created a massive buying opportunity for many altcoins on the BTC paired charts. One coin, in particular, has been letting the side down, namely LINK.
It seems like only yesterday that Zeus capital got rekt shorting LINK as it pumped from $10 to $20, but this was August 2020, when Bitcoin was trading at a lowly $10,000.
In the last few weeks, despite LINK pushing to new all-time highs, the Twitterverse has been jokingly calling LINK a stablecoin as it’s been hovering around $25 for what seems like forever.
It was even recently flipped by DOGE on the market cap ratings. Not a good look for the "LINK marines," who've been beaten by a meme...for the time being.
The trend is your friend
Starting out on the 1-hour chart for LINK, you’d be blind not to see the solid uptrend LINK has held since the beginning of 2021.
Right now, the mid-channel resistance on the LINK/USD chart is sitting around $29 with an upside target of around $34.
The move upward has been so significant these past months that the next level of support if the bullish structure breaks can be seen around $17.20. However, you’d be doing yourself an injustice with these mediocre targets as you’re missing the bigger picture. To understand this, you only need to look at the UNI/BTC chart.
Uniswap topped out after a 100% retracement vs. BTC
One of the recent success stories of 2021 is Uniswap, which has rallied from under $3 to over $20 in just a matter of weeks. It’s hard not to FOMO into coins that are tearing up the runway like this, and with many alts in price discovery, it’s hard to know which coin to buy when looking at the USD pair chart.
But we can see a pattern on the BTC pair charts with a little help from the Fibonacci retracement tool to really see where the opportunity lies — and right now Chainlink is looking quite juicy.
UNI sat around the 0.236 for about six weeks before breaking out from its own $3 "stablecoin" levels, and it now rests above $20, Meanwhile, LINK is only four weeks into its 0.236 pit stop.
LINK is currently on a fire sale
Moving over to the LINK/BTC chart and it’s currently 154% away from its previous high in Bitcoin terms, hovering around 0.236.
LINK is not alone on this chart. Many other coins are exhibiting the same structure against Bitcoin, and with each pump that Bitcoin has, the gap to the top gets higher and higher.
With LINK currently trading at $27.50, this would put the price of LINK at $70 just to regain its previous Bitcoin paired level, but that's assuming that Bitcoin stays around its current level.
Bitcoin consolidation phase
It's inevitable that Bitcoin will push higher this market bull market. However with such a massive move this week, we can expect a period of consolidation. During this phase, we can start expected BTC gains to flow into alts, thus perpetuating the altcoin boom cycle.
Right now, $48,000 is acting as resistance in this channel for Bitcoin. This is the zone to break past for the next big leg up, and each day $100,000 Bitcoin seems more and more inevitable.
However, as it rests around $46,000, we can see that a pullback to the mid-channel support of $41,300, which would represent an 11% drop. Furthermore, a 28% drop to $33,280 shouldn’t be ruled out as this would still retain a bullish structure.
Despite my overall bullish bias for Bitcoin. If I ask myself what is more likely in the short term, $100,000 Bitcoin or $70 LINK? The answer to that question is an easy one to answer: marines for the win.
Heatmap data suggests $48K is the local top
Moving over to the heatmap data on Tensorcharts, there are sell walls at $48,000, which further reinforces that it’s not quite yet time for Bitcoin to shine to a six-figure price target, with large but not huge buy walls sitting between $43,000 and $44,000, respectively.
This leads me to believe that for the time being, we can expect some sideways price action from Bitcoin for the next few days, allowing LINK and other alts to catch up.
Key price levels to watch for LINK
The next key level for LINK to break is the channel resistance of $34, this would start putting the Bitcoin paired Fibonacci levels as the most logical areas of resistance should it break up out of this bullish ascending channel.
The fib levels on the BTC pair chart visualized on the 1-day USD pair charts give a taste of what to expect from LINK in the coming weeks, showing a key level being around $36 to claim the 0.382. Then $43 to claim the 50% retracement, and around $48 to rest on the 0.618, which I imagine will overshoot to the 100% retrace at $70 before resting back down to this level.
As for the downside potential for LINK, $25 seems to be the local bottom. Losing this wouldn’t be good for the bulls, as it’s a long way down to $17.20. However, from a technical perspective, “only up” seems like the play here for now.
The views and opinions expressed here are solely those of @officiallykeith and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.