$LINK/BTC Short - Possible Blow-Off Top Forming
I think there's a good chance we may be seeing the beginning of a volatile and rapid bearish expansion for LINK.
We can see a high correlation between Chainlink's chart to a typical market bubble / blow-off top - including an almost vertical, aggressive final phase finishing off with a spinning top on the 12H.
Looking at the hourly chart, we can see that we've broken market structure by having clean closes below the swing low that made the high - this being so much more significant due to it occurring at the -0.27 extension of the daily range that preceded the final run up.
We failed to break back into bullish market structure and have instead retraced back into the hourly supply that made the most recent swing low.
Combining the factors mentioned on the chart above/this analysis with the increasingly widespread euphoric speculation leads me to believe the whales might have found their point of highest liquidity in which to sell in to.
In conclusion, I would be vary wary of entering any long positions at these levels as it seems likely we might be seeing circa $8 again before long. If true capitulation occurs, we could even see sub $5 in the coming months.
I know this won't be a popular opinion, but it's often best to exercise a contrarian view when your analysis indicates weakness and the hype levels are at such a peak.
Thanks for looking - don't shoot the messenger!
FantasticMrFX
We can see a high correlation between Chainlink's chart to a typical market bubble / blow-off top - including an almost vertical, aggressive final phase finishing off with a spinning top on the 12H.
Looking at the hourly chart, we can see that we've broken market structure by having clean closes below the swing low that made the high - this being so much more significant due to it occurring at the -0.27 extension of the daily range that preceded the final run up.
We failed to break back into bullish market structure and have instead retraced back into the hourly supply that made the most recent swing low.
Combining the factors mentioned on the chart above/this analysis with the increasingly widespread euphoric speculation leads me to believe the whales might have found their point of highest liquidity in which to sell in to.
In conclusion, I would be vary wary of entering any long positions at these levels as it seems likely we might be seeing circa $8 again before long. If true capitulation occurs, we could even see sub $5 in the coming months.
I know this won't be a popular opinion, but it's often best to exercise a contrarian view when your analysis indicates weakness and the hype levels are at such a peak.
Thanks for looking - don't shoot the messenger!
FantasticMrFX
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