LINK/USD: When Will This Consolidation End?
• LINK/USD is in a long-term consolidation after an abrupt selloff.
• The market is currently in a horizontal channel, and both bulls and bears must wait for a breakout before acting.
• A bearish flag pattern may appear if the price continues to follow its current direction.
LINK/USD Market Overview
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.
Bullish Accomplishment
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 Rally
2023 brought a much-needed rally to the cryptocurrency market. Bitcoin, in particular, surged, and its bullish price action translated into bullish movements on other coins too. Indeed, LINK/USD rallied from $6 to $8, only to meet new sellers there. In other words, the price action evolves inside a horizontal channel, and until a breakout, the chances are that it will go nowhere for both bulls and bears alike.
Bearish Flag Pattern?
Whenever a horizontal consolidation appears on a chart such as this one with LINK/USD ,the technical trader should look on the left side for trending conditions which could turn out as part of bearish flag pattern . If this scenario indeed happens then we can expect more downside movement from here with measured move being equivalent with width of this horisontal channel .
Summary
In summary , Link/ USD is currently stuck within range between 6 – 8 US dollars , so far no major trend has been established as traders are waiting for breakout before any meaningful action takes place . There might be possibility for bearish flag pattern formation here if current sideways market continues .
