I thought i would do a post about how the 'Bitcoin Hedge Coin' is doing....

Chainlink has had an awesome start to its creation. The project has amazing fundamentals and if the team can pull it off this could be one of the best investments you could make in the crypto world.

Compared to other altcoins, Chainlink is one of the only coins not in a downtrend ('yet').

Lets look at a chart -

So it started off with the normal selling from people who bought the initial offerings. Which formed a nice descending wedge.

It then had a nice little run up, which didn't quite hit the target (top of the falling wedge). However the rising wedge it was in, broke, then got backtested then fell to its target of the bottom of the rising wedge. This created a falling wedge, which broke and hit its target, had a small correction then went crazy. This created a rising broadening pattern, which has recently just broken down with the Corona Virus scare. 

The sell off was massive. It literally wiped out 80% of the gains. The good thing is  the bottom horizontal support held and the price quickly recovered to the 786 fib.

For now anyway, Link has formed this huge range between $1.50 and $5.00. 

One thing to note is that when it has come down to the bottom level, it has double bottomed, the price has hit the line twice before rebounding, and the same when it hit the top of $5. 

So with that in mind, we could see it coming back to $1.50 before starting its uptrend again.

Now lets look at the 4 HR-

After breaking the rising broadening wedge, it met its target very quickly. the size of the candle and the volume is defintely capitulation. So many hands have changed here. People that have bought on this dramatic fall are much less likely to sell, as they have bought at low prices and are speculating an uptrend. If the price somehow falls below the $1.50 mark then this could spark another big sell off.

Lets zoom in with indicators -

So there is some definite divergences here, as the price dropped lower the RSI and MFI both started an uptrend.

I think given the history, we could well see a second drop to the lows between $1.50 - $1.70 to get that double bottom, with a 3rd divergence on the indicators, this would signal a big buy signal and most likely the start of another uptrend. 

For now we just have to sit back and watch, and maybe put some buy orders in around that low point. not financial advice, but that is what i will be doing!

Happy Trading!