Few coins in the crypto world have performed anywhere near as well as Chainlink – Bitcoin included. After nearly three steady years of overperformance against the most dominant cryptocurrency, LINKBTC could have also topped alongside the USD pair.
One top crypto trader with a track record of successful calls has shared a new chart outlining the path Chainlink could take before ultimately buckling against Bitcoin.
Crypto Trader Expects Chainlink To Collapse Against Bitcoin, Following Descending Triangle Pattern
What goes up must come down, as the saying goes. Chainlink’s historic run both against the dollar and Bitcoin is one for the crypto record books, as short as they may be. But it could have culminated over the hot summer months when LINKUSD hit $20, and LINKBTC topped out over 166,000 sats.
Since then, the LINKBTC trading pair fell over 50% from local highs to support. But each time support has been tested, it has resulted in an over 20% bounce.
A top pseudonymous crypto trader has shared a new chart on Twitter expecting that 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, however, won’t come without a bull trap before the end of what appears to be a descending triangle. A false breakout to the upside sets the stage for a bull trap that pulls prices much deeper, back to 35,000 sats, or roughly another 60% fall from support.
Related Reading | This Chart Suggests Chainlink’s Parabolic Rise Isn’t Finished
The total fall on the LINKBTC trading pair would represent a free fall of 78% from highs.
LINKBTC Could Continue To Fall, Statistics Show, But By How Much?
But that could not be the end of the downtrend for Chainlink, even if there’s a more significant bounce at that level. The case for why that is is in Bitcoin itself.
When any asset, crypto or otherwise, breaks its parabolic advance, statistics show that they typically retrace 80% or more. Peter Brandt, a career commodities trader, called Bitcoin’s bottom a year earlier using nothing more than his data alone.
Related Reading | Chainlink Following In 2017 Ethereum Footsteps Could Fuel Rise To $75
Bitcoin, in the end, fell 84% to its final low. Altcoins, however, had it a lot worse and dropped to as much as 99% in many cases.
The target for Chainlink, being far more promising than many of the altcoins of the crypto bubble, but not quite as fundamentally strong as Bitcoin yet, is likely somewhere in between the two extremes.
Featured image from Deposit Photos, Charts from TradingView
