Crypto traders are eagerly waiting for the bull run to begin after the Bitcoin halving in April. Choosing the right coins and tokens and riding the bull run not just with Bitcoin but also with strong altcoins that have good projects supporting them proved useful in previous halving cycles. For this cycle, Chainlink could become one of the alternatives to include in a crypto portfolio.
Chainlink has grown well over the years. Its ability to connect real-world data to smart contracts, cross-chain messaging capability known as Cross-Chain Interoperability Protocol (CCIP), and new tokenization features might greatly contribute to crypto and smart contract adoption in the coming years.
Even though LINK might look like a good addition to a portfolio for the expected bull market cycle, timing in the crypto market has always been the most difficult part. Due to low liquidity relative to stock and forex markets, price moves can sometimes happen very quickly. Many altcoin traders have seen moves of over 30% up or down in just a few days. The same thing might happen to LINKUSD this time as well.
(LINKUSD Daily Chart – Logarithmic)
There is a head and shoulders pattern formed above the $12 neckline. While the formation is not perfectly symmetrical, it is clearly present. Therefore, the key point to watch is the $12 support level for the moment.
After Bitcoin halvings, the bull run usually shows its first signs about six months later. For this cycle, upward movements might not begin until the third or fourth quarter. Maintaining a balance between patience and FOMO (fear of missing out) will be key for good entry points. For LINK, three points stand out the most at the moment.
First is the $12 neckline support. As long as this level holds, it remains the main support level. However, if it breaks, a possible trend might form from the lows of June and September 2023, roughly pointing to $9.25 at the moment. The zone between $9.25 and $10 might create good entry opportunities.
The worst-case scenario for LINK bulls or buying opportunity depending on the view would be a retest of the earlier resistance line at $8. Although the probability of this is not too high right now, crypto markets often surprise traders, and not always for the better.
