The chance that buyers had last week was well realized during the current trading week. Last week candle closed with a big pin down and showed LINK market participants an increased demand over supply.
In addition to the weekly pin, the chart shows that the LINK price closed above the critical range of $12.65-13. In the previous article we stressed the importance of fixing the price above this zone and the positive consequences for buyers.
The chart clearly shows how important this range was in the long run. From October, buyers are trying to take it under their control. The fact of the current weekly candle closing above the previous candle opening price forecasts a positive trend for buyers next week.
New local problem for buyers at $14
After breaking the range of $12.65-13 on 16 December, buyers felt local resistance at $14:
In the 4-hour timeframe, it is noticeable that the highest volumes of market participants were concentrated near this mark, during the growth momentum from 16 to 17 December.
However, buyers were able to keep the new growth trend from 11 December. The sharp sellers’ response at $14 forced buyers to organize a consolidation to buy the offer at favourable prices. The successful breakthrough of the current consolidation upwards will give the LINK market a new momentum to the range of $16.2-17.2.
Yesterday’s update of the historical high in the BTC market did not increase LINK influence on the crypto market. Liquidity continues to move in the BTC, not allowing other coins to catch it up. The LINK dominance continues to decline, but so far it does not negatively affect the price:
Alternative LINK scenario and its preconditions
Given the low trading volumes that began in early December, the LINK market continues to be in the waiting phase. Therefore, the main luminary from which LINK depends the most is Bitcoin.
Unsuccessful consolidation of BTC buyers above $13,100 may provoke a sharp correction in the market. Given how close the LINK price is to the critical range now and the bottom trend line – this BTC correction may be critical in the LINK market:
A sharp return of the price below $12.65 may cause a short-term price fall to $11.5. It will indicate the formation of a consolidation in the range of $11.5-14.
There buyers will continue to gain position to conquer new highs. Though, the preconditions of this scenario will be clearly visible in the form of aggressive falling candles in the range of $12.65-13 and a significant increase in trading volumes.