LINK trader says that the coin could “Dumpster Dive” if Bitcoin weakens further despite Chainlink recovering from its recent lows and it is in a process of pushing higher so let’s read more in our chainlink coin news.
The cryptocurrency’s current strength came about due to the one seen by Bitcoin with the number one cryptocurrency pushing higher as bulls try to reverse the weakness it has seen as a result of the $13,800 rejection. If Bitcoin continues pushing higher, it could create tailwinds for other altcoins that help lead Chainlink higher in the upcoming days and weeks. The next key price level that it needs to surpass to post further gains is $12.00 because it was a previous resistance level that it was trying to flip into support. One LINK trader still noted that LINK could be poised for serious near-term downside stating that the recent weakness in Bitcoin could cause it to dive lower.
With all that being said, the strength expressed by the number one cryptocurrency over the morning could be enough to invalidate the sentiment and send it skyrocketing higher. At the time of writing, Chainlink was trading up over 1% of its current price at $11.55 which marks a notable climb from the lows of $11.20 that was sent a few hours ago. The ongoing upswing came about in tandem with that seen by BTC as the number one cryptocurrency is trying to break the $13,500.
Where will BTC trend next will have a huge impact on altcoins like Chainlink and any continued weakness that could spark a brutal selloff as investors rotate of the high-beta assets just like Chainlink. Another trader explained in a recent tweet that he believes LINK could “dumpster dive” if Bitcoin showed signs of weakness in the near-term:
“Looking at Link as a high R/R short hedge against a potential BTC top. I think if BTC drops down to low 13ks again then link will dumpster dive with it.”
When BTC drops, other altcoins like Chainlink usually underperform it as the traders short them even more aggressively to maximize the profitability of the market-wide downturn. This means that Chainlink’s near-term fate rests in the hands of Bitcoin alone which could end up being a positive thing in the near-term.
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