Welcome back to my Bitcoin daily analysis, in this analysis I will be giving you an update on chainlink and the potential 30% price surge that we might see in the coming days.
My attention will be focused mainly on the current bullish pennant pattern forming on the cryptocurrency.
I will also be pointing out the important levels I will be watching, my target regions, and my entry criteria.
Please remember this only my opinion of the Chainlink market and should not be taken as financial advice.
Trading The Pennant Pattern
The pennant pattern is a bullish pattern that occurs during a price pull back, and it is a great indicator that points to a trend continuation once price breaks out of the pattern.
This might be the case for Chainlink as we are currently witnessing a price pullback and a pennant form after days and days of bullish momentum.
This bullish pennant pattern is also forming on the Chainlink/USD trading pair. I also expect to see the bullish trend return on the pair once the Chainlink/USD price breaks out of the pattern.
My Entry Criteria
My entry criteria is a price breakout and close above the top resistance channel of the pennant pattern.
It is important to wait for this breakout entry criteria because nothing is certain in crypto trading and there is a little likelihood that we might see the pattern fail and crash.
I will also be watching out for an increase in the bullish trading volume.
An increase in the bullish trading volume during the price breakout from the pennant pattern, confirms the potential move to the upside and tells me that more buyers are stepping in.
Important Levels And Target Regions To Watch
The important level I am watching right is the support and resistance channel of the pennant pattern.
A price breakthrough the support to the downside could see more weakness coming into the Chainlink cryptocurrency and larger price correction in the coming days.
However, a price break above the resistance to the upside could potentially see us testing the 0.01812 BTC price region.
This is a 30% price surge I am looking to take advantage of and might occur within just a few days.
Warning About The Coming Blow-off Top
It is very important to remember that Chainlink has been very bullish for the past few weeks, with the price gaining over 270% in a short period of time.
This huge price surge puts the continuous upward potential for chainlink at a limited level.
Therefore it is important you manage your risk well and trail your stop loss aggressively in order to avoid getting caught off guard whenever the price decides to finally reverse.
For a list of the top best Altcoins to put on your watch list and trade during this coming bull run, check out my Top 25 Cryptocurrencies by Market Capitalization
To gain more information on how to partake in this coming Bitcoin Bull run and trade this cryptocurrency, you can read my How To Trade Bitcoin Guide. You can also check my top list of Best Bitcoin Exchanges To Trade With.