A Stable/Bullish Bitcoin Puts Chainlink (LINK) On Road to $20: Analyst
The statement somewhat took cues from LINK’s dependence on the Bitcoin trend to find out its bias. The Chainlink token moved almost in sync with its top rival, particularly after they formed a yearly top around August 16 and later began correcting lower hand-in-hand.
Released at Thu, 29 Oct 2020 05:41:35 +0000
Between then and September 23, the LINK/USD exchange rate had plunged by over 60 percent. At the same period, BTC/USD was down a dwarfed 21 percent.
Bitcoin Uptrend to Deal
If Bitcoin achieves stability or additional bullishness in the sessions ahead, it could assist its rival asset Chainlink (LINK) add more value to its market capitalization.
Bitcoin resumed its uptrend after bottoming out near $9,800.
Overall, that leaves Chainlink bullish.
So says Kevin Svenson, an independent market analyst. The chartist noted in an early Thursday tweet that LINK could hit a $20 valuation, almost 66 percent higher from where it is trading at the time of this writing. He made the bullish forecast after spotting the altcoin’s October performance, wherein it increased by almost 18 percent to date.
And then, the restoration began for both the assets. LINK bottomed out at $7.31 and rebounded to as high as $12.97 on October 24 — a 77.38 percent retracement. Meanwhile, Bitcoin formed a double bottom at $9,819 on September 8 and 5. However, it jumped back to as high as $13,863 on October 29 — a 40 percent recovery overall.
The BTC/USD bulls are also eyeing an protracted upside move while waiting for the US government to finalize the second coronavirus relief package. Global strategists consider that the next stimulation would come just after the election.
Source: LINKUSD on TradingView.com
Mr. Kevinson, meanwhile, sees Bitcoin at higher price levels at least after the November 3 presidential election.
That somewhat explains why Mr. Svenson locked LINK’s bullish expectations with that of Bitcoin. There’s a correlation between the two. CryptoWatch also confirms it by studying the coefficient involving Bitcoin and Chainling in 0.61 percent over zero.
The analyst emphasized the recent decoupling of the cryptocurrency in the S&P 500 index, saying that the same happened before the November 2016 election. But after the presidential race, both Bitcoin and the S&P 500 entered a bull market, a fractal that eyes a repeat.
Given a minimum size of $2 trillion, the aid could reduce investors’ dependence on the US dollar and bring back their investments into riskier assets like Bitcoin amid a near-zero interest rate environment.
Bitcoin-S&P 500 correlation ahead of the US election, as seen by Kevin Svenson. Source: SPX on TradingView.com
“Chainlink has been increasing in cost for the past month. “If Bitcoin can stay stable and/or bullish we could develop another parabolic trend going into 2021. Who is ready for a +$20 LINK?”