The crypto market is crucial, signaling an upcoming positive cycle. The largest cryptocurrency has been in the spotlight, staying above $43,000. With a trading range of $34,000 to $45,000, $43,000 is a key resistance level that Bitcoin has successfully held, showing its stability. This range is now a crucial support level, attracting attention from both regular and big investors.
Analyst Crypto Capital Venture has opened up about the intricate patterns on the Bitcoin and Chainlink charts, shedding light on potential price movements. He said that Bitcoin navigates two macro patterns on the daily chart: a multi-year bear market pattern and a falling wedge breakout with a target of $55,000.
Additionally, a rising wedge pivot targeting $70,000 creates an interplay between the two patterns. The current challenge for Bitcoin is a formidable resistance barrier, notably around the 618 resistance level. Bitcoin’s potential breakout could lead to a test of the $45,000 to $46,700 range.
The analyst discussed potential scenarios, mentioning the possibility of Bitcoin breaking above the 618 resistance and testing the $45,000 to $46,700 range. However, he also warned and said to consider the historical tendency for Bitcoin to test lower highs after encountering such resistance.
He also said that Chainlink is undergoing consolidation after a breakout, positioning itself as a potential leading indicator for altcoins. Drawing parallels to the last cycle, Chainlink showed strength and outperformed other altcoins before their bullish cycles.
Comparisons were made between Chainlink, Ethereum, and Cardano in their pre-Bitcoin-halving phases. Chainlink was declared as the stronger performer. Ethereum and Cardano showed lower highs during this period, while Chainlink showed a more powerful move.