• LINK/USD has been in a long-term consolidation following an abrupt selloff.
• Both bulls and bears must wait for a breakout before acting, as the price action is inside a horizontal channel.
• A bearish flag pattern might form, but for confirmation of a bottom buyers should wait for the price to break above $9.5 or even $10.
LINK/USD Consolidation
LINK/USD has consolidated for more than six months after an abrupt selloff. Chainlink provides data to smart contracts on the blockchain, and both bulls and bears must have lost their patience while waiting for a breakout before acting on this cryptocurrency pair.
Price Action Inside Horizontal Channel
Unlike other cryptocurrencies, LINK did not make new lower lows in the second half of 2022. Instead, buyers appeared on every attempt to trade below $6, indicating that bulls are still in control. 2023 brought a much-needed rally to the cryptocurrency market which provided bullish movements across all coins including LINK/USD which rallied from $6 to $8 only to meet new sellers there and put it back into a horizontal channel – meaning until a breakout happens, chances are that it will go nowhere but frustrate both bulls and bears alike.
Bearish Flag Pattern?
Whenever a horizontal consolidation appears on a chart, technical traders should look on the left side for trending conditions since such consolidations usually appear ahead of another big market move. In this case, there is evidence of bearish trend present; suggesting that the horizontal channel might be part of a bearish flag pattern instead of carving out a bottom – however, for confirmation buyers should wait for the price to break above $9.50 or even better above $10 before going long .
Measured Move Target
The measured move of any horizontal channel is its width so traders should simply look out for any type of breakout in either direction and target its measured move accordingly .
Conclusion
LINK/USD has been stuck in consolidation following an abrupt selloff with both bulls and bears waiting patiently for some direction or movement from this cryptocurrency pair – currently trading inside an established horizontal channel that could potentially form into a bearish flag pattern if broken downwards OR carve out its bottom if broken upwards (above$9.50). Whichever way it breaks traders should target its measured move as per usual .