The Link/BTC price surged more than 20% in gains today after bouncing off of the 0.000966 key support region. This key price region as acted as a strong resistance for the Altcoin in the past and today, it served as a strong base for the Link bullish traders to push the price back up to 0.001209.
However, Chainlink is still trading in a downwards trend and there is a very high likelihood that this bearish bias might continue in the coming days.
In this Chainlink analysis, we will be analyzing various technical indicators that are pointing to this potential bearish development on the Chainlink chart, as well as the important price levels and support regions to watch out for in the coming days.
ChainLink Is Trading Within A Descending Channel
The Link/BTC price is currently trading within a very developed descending channel on the 4-hour timeframe. The recent bullish bounce we saw in the price was not the start of a new bull run, instead it was only the Altcoin price bouncing off of the floor of the descending channel.
This bullish price bounce is likely to drive the Link/BTC price back up to the top of the Channel to the 0.00138 price region in the next few days.
A break of this 0.00138 resistance region could prove very difficult for the Chainlink bulls.
Little To No Bullish Volume To Push The Price Higher
The next indicator we will be looking at is the volume indicator. This indicator clearly describes the bullish price move we are witnessing right now as little to no buying power pushing the price higher.
This lack of bullish momentum also points to a bearish outlook for chainlink. If this bullish volume weakness continues, then there is a high probability that we might see the Link/BTC price bounce off the top of the descending channel and a dump back down to the bottom of the descending channel.
Can Chainlink Become Bullish Or Should We Expect A Larger Correction Soon?
The most important price level to watch out for a bullish outlook on the Link/BTC price in the coming days is the 0.001526 horizontal resistance.
A break and close above this key resistance could see the Link/BTC price surging past the previous highs of 0.001680 soon. However, a fail and bounce off of this resistance could result in a crash back down to the 0.00966 support region.
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