Bitcoin‘s price has finally surged back above $44,000, a pivotal point that may determine the fate of altcoin rallies. This resurgence follows a dip to $40,000 spurred by strong employment data and anxiety over Federal Reserve policies. The market’s optimism is fueled by the possibility of ETF approvals, which is increasing investors’ appetite for risk.
Despite potential selling pressure hindering Bitcoin’s ability to maintain its position above $44,000, altcoin investors remain hopeful. Chainlink (LINK) has seen a steady increase in value since hitting a low of $4.9 in June, with a notable acceleration in September. The price recently surpassed the $17.3 mark, reaching its peak for 2023 after breaking through a 900-day resistance level.
Although LINK’s price has retreated from its peak, creating a bearish engulfing candlestick pattern for the first time since August, there’s a possibility of invalidating a bearish scenario if Bitcoin remains strong. The Relative Strength Index (RSI) is still weak, and LINK is struggling to maintain support at $14.6.
Elliot Wave Theory, widely used among crypto investors, suggests that LINK may have completed a five-wave upward movement, indicating a significant price correction could be imminent. However, prominent crypto analyst The CryptoBull remains confident in LINK’s potential for price growth despite a weakening bullish trend.
Other analysts, including Steve, share the sentiment of a bullish outlook. With Grayscale Chainlink Trust currently around $50, there is speculation that the spot price could reach this level in the short term. While a $250 target is ambitious, even a $50 target represents a significant increase. Considering the substantial gains made by many cryptocurrencies this year, such a target is not out of reach. Nevertheless, if the current technical analysis is correct, LINK could be entering an A-B-C correction pattern, with a potential short-term drop to between $12.5 and $11.05, but a breach of the yearly high could lead to a short-term peak of $20.