Trader Raises Concerns for Ethereum-Based Altcoin Following Significant Rejection, Offers New Analysis on Bitcoin
A prominent trader in the cryptocurrency space has issued a warning regarding an Ethereum-based altcoin, suggesting that it may experience a sharp drop after being rejected from a crucial level. The trader, known as Rekt Capital, has a substantial online following and has advised his 384,800 Twitter followers on the potential downfall of decentralized oracle provider Chainlink (LINK), stating that the altcoin has breached the support of an ascending channel chart pattern. To prevent a more severe corrective move, Rekt Capital stresses the importance of LINK maintaining immediate support around $13.50.
Rekt Capital emphasizes the confirmation of the breakdown from the blue market structure, resulting in a potential reoccurrence of LINK’s decline towards the bottom of the red area. The analyst warns that LINK must hold this position to avoid a period of downside movement.
As of now, LINK is trading at $13.65, displaying a modest increase of over 2% within the past 24 hours.
Shifting focus to the leading cryptocurrency Bitcoin (BTC), Rekt Capital shares his perspective on the asset’s future trajectory. He predicts that BTC, with its market cap dominance, will experience a parabolic rise in 2024 after the upcoming halving event in April.
Historically, the halving has corresponded with notable bullish runs for Bitcoin. By halving miners’ rewards, this event alters the asset’s supply dynamics and often triggers price surges. According to Rekt Capital, BTC will potentially undergo a pre-halving correction, followed by a rally leading up to the halving event, a subsequent dip, and then a period of re-accumulation. Finally, BTC will embark on a parabolic post-halving upswing.
The analyst further notes that BTC has managed to convert the top of its trading range into support, which sets the stage for a potential break above the $45,000 mark. He highlights that the successful retest of the pattern’s top confirms a breakout, indicating favorable positioning for price continuation.
At the time of writing, Bitcoin is trading at $44,128, reflecting a marginal increase in value over the past 24 hours.