Hello Trader, here is my analysis for LINKUSD .

Link has potential, it’s not nearly as bad as FTM or ADA which we looked at recently. In fact this year I’ve taken a few long positions at Major Support levels, knowing that a bounce was likely. The problem is I am extremely Bearish on Bitcoin at the moment and as we know Alts will follow. Despite Bearish price action, Rip your face off rallies still occur during a bear cycle. This is when we look to enter long positions!

Before I even start… LINK will continue to have Bearish price action until it breaks out of the falling wedge . You’ll most likely know when LINK has hit its bottom because it will break the formation to the upside signaling a reversal.

How do we predict where the bounces will occur?
– Typically bounces occur at Key/Major support levels.
– There are other factors that come into play such as time counts, how quickly it hits the level, any consolidation before hitting the level, etc.
– But just to keep it simple, we want to look for key support levels to take longs.

But if Alts follow BTC and we enter a position in LINK at a key support level , how do we know it will bounce? Can’t BTC bring it down?
– The key here is to try and align the major Support and Resistance levels of whatever Alt you’re trading with BTC .
– So if it looks like BTC is about to hit a key support level and so is LINK, then chances are they will both bounce since they hit the levels at the same time.
– On the reverse, if BTC is about to hit a major level but LINK is not, BTC can bounce but LINK might not.
***Perfect example is right now LINK is not at a key support level , while Alts like Avax and Matic are. Both go great bounces along with BTC while LINK not so much.

So where is LINK headed?
– As you can clearly see LINK has been trending down in a falling wedge formation.
– Yes this is technically Bullish , but LINK could continue to trade between it for months before breaking out.
– Until Link breaks out of the formation, it will continue to act as support & Resistance .
– You could always short at the top and long at the bottom of the formation.
– The key support levels are listed on the chart, as long as BTC keeps trending down, LINK will follow.
– Each time a Key Support level is broken, that confirms downside continuation and the target is the next support level .
– $7.12 is a Major support level , there is a high probability LINK gets a bounce there especially if it comes down straight into it over the coming month without much consolidation.

How low can LINK go?
– IMO I believe LINK will hit $5 in the coming months, it’s even possible it goes lower. But for now I think $5 will be the low.
– Link will gets bounces along the way but until it breaks the formation to the upside, I personally would not enter a long term position.

What about the short term?
– The next target for LINK is $10, it may get a bounce being as it’s a psychological level. But I think when it retraces it will break quite easy and continue lower.
– Then $7.12 where I would be expecting a larger size bounce, especially since it’s been trending down for nearly a month.

Thanks everyone and best of luck trading!