The crypto market is extremely important and suggests a virtuous cycle ahead. The largest cryptocurrency is gaining attention and is hovering above $43,000. The trading range is between $34,000 and $45,000, with $43,000 being a key resistance level that Bitcoin has managed to hold, indicating its stability. This range is currently an important support level and is attracting attention from both retail and large investors.
Analysts Crypto Capital Ventures shed light on the complex patterns in Bitcoin and Chainlink charts, highlighting potential price movements. He said Bitcoin is riding out two macro patterns on the daily chart: a multi-year bear market pattern and a descending wedge breakout with a target of $55,000.
Furthermore, the rising wedge pivot targeting $70,000 creates an interaction between the two patterns. The current challenge for Bitcoin is the formidable resistance barrier, especially around the 618 resistance level. A potential Bitcoin breakout could lead to a test of the $45,000 to $46,700 range.
The analyst discussed potential scenarios and mentioned the possibility of Bitcoin breaking through the 618 resistance level and testing the $45,000 to $46,700 range. However, he also cautioned to consider Bitcoin’s historical tendency to test lower highs after encountering such resistance.
He also said that Chainlink is consolidating after the breakout and is positioning itself as a potential leading indicator for altcoins. Similar to the last cycle, Chainlink showed strength and outperformed other altcoins before the bull cycle.
A comparison was made between Chainlink, Ethereum, and Cardano before the Bitcoin halving. Chainlink was declared the stronger performer. During this period, Ethereum and Cardano traded higher, while Chainlink showed stronger movement.