A Stable/Bullish Bitcoin Puts Chainlink (LINK) On Road to $20: Analyst
“Chainlink has been increasing in price for the last month. “If Bitcoin can remain stable and/or bullish we could develop another parabolic trend going into 2021. Who’s ready for a +$20 LINK?”
Mr. Kevinson, meanwhile, sees Bitcoin at higher price levels at least following the November 3 presidential election.
Given a minimum size of $2 trillion, the aid could reduce investors’ dependency on the US dollar and bring back their investments into riskier assets like Bitcoin amid a near-zero interest rate environment.
The chartist noted in an early Thursday tweet that LINK could hit a $20 valuation, almost 66 percent higher from where it’s trading at the time of this writing. He made the bullish forecast after spotting the altcoin’s October performance, wherein it climbed by almost 18 percent to date.
Released at Thu, 29 Oct 2020 05:41:35 +0000
Chainlink is resuming its uptrend after breaking reduced from its previous parabolic support. Source: LINKUSD on TradingView.com
The BTC/USD bulls will also be eyeing an extended upside move while waiting for the US government to finalize the second coronavirus relief package. Global strategists consider the next stimulus would come just after the election.
Between then and September 23, the LINK/USD exchange rate had plunged by more than 60 percent. In the same period, BTC/USD was down a dwarfed 21 percent.
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 highlighted the recent decoupling of this cryptocurrency from the S&P 500 index, saying that the same happened prior to the November 2016 election. But following the presidential race, both Bitcoin and the S&P 500 entered a bull market, a fractal that eyes a repeat.
Bitcoin-S&P 500 correlation ahead of the US election, as seen by Kevin Svenson. Source: SPX on TradingView.com
And then, the restoration began for both the assets. LINK bottomed out at $7.31 and rebounded to as large 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. But, it jumped to as large as $13,863 on October 29 — a 40 percent recovery in general.
If Bitcoin achieves stability or additional bullishness in the sessions ahead, it could help its rival advantage Chainlink (hyperlink ) add more value to its market capitalization.
The statement somewhat took cues from LINK’s dependence on the Bitcoin tendency to determine its bias. The Chainlink token moved almost in sync with its top rival, particularly after they formed a yearly top around August 16 and afterwards began adjusting lower hand-in-hand.