Few coins in the crypto world have done anywhere near as well as Chainlink – Bitcoin included. After almost three years of outperforming the most dominant cryptocurrency, LINKBTC could have hit the top alongside the USD pair.
A top crypto trader with a track record of successful calls posted a new chart detailing the path Chainlink could take before ultimately turning against Bitcoin.
Crypto Trader expects Chainlink to collapse against Bitcoin after descending triangle pattern
What goes up has to come down, as the saying goes. Chainlink’s historic run against both the dollar and Bitcoin is one for the crypto record books, as short as they are. But it could have peaked in the hot summer months when LINKUSD hit $ 20 and LINKBTC topped over 166,000 sats.
Since then, the LINKBTC trading pair has fallen over 50% from local highs to support. Every time the support has been tested it has resulted in a jump of over 20%.
A pseudonymous top crypto trader posted a new chart on Twitter expecting the same support to be thoroughly tested until it finally breaks down.
LINKBTC Weekly Descending Triangle Pattern Expected | Source: TradingView via DonAlt on Twitter
The breakdown won’t come without a bull trap before the end of what appears to be a descending triangle, however. A false upside breakout sets the stage for a bull trap that pulls prices much lower, back to 35,000 sats, or another drop in support by around 60%.
Related reading | This table suggests that Chainlink’s parabolic rise is not complete
The overall decline in the LINKBTC trading pair would represent a 78% free fall from the highs.
LINKBTC could fall further, statistics show, but by how much?
However, this might not be the end of the downtrend for Chainlink, even if there is a more noticeable upswing at that level. The reason for this is Bitcoin itself.
When an asset, crypto or otherwise, breaks its parabolic progress, statistics show that it is typically tracking 80% or more. Peter Brandt, a career commodity trader, called Bitcoin the low point a year earlier and only used his data.
Related reading | Chainlink following the steps taken by Ethereum in 2017, fuel could rise to $ 75
Bitcoin ended up falling 84% to its final low. Altcoins had it much worse, however, falling as low as 99% in many cases.
The target for Chainlink, which is far more promising than many of the crypto bubble altcoins but not quite as strong as Bitcoin, is likely somewhere between the two extremes.
Selected image from deposit photos, charts from TradingView