We are in a bearish trend, on a lower time frame, but on a higher time frame, we are still bullish. At this level of $13, support level, seems to a strong catalyst for a mere bounce up for 15% or even more. As the market has tested the resistance at 17.50, we are anticipating this level to be broken out for a further up bullish leg.

At the support level, the retracement level of 75-78.6% has been breached, hence, there is no further indication of a bounce from the retracement level. In order to consider the retracement levels invalid, 3-4 daily candles need to close below the 78.6% level.

The descending trendline is still above the pair and market needs to break this for the confirmation of a bullish cycle. Right now, the idea for the breakout buy seems far fetched given the current state of affairs around the world. Nevertheless, we still need to accomodate our trade plan in lieu with the trendline.

EMA 50 and EMA 200 are still bearish. It needs to be noted that the death cross is still bearish. At the resistance level, EMA 200 may be retested or broken. The support level we are looking to go long, we don't see any indication of the EMA to be in confluence with. We will only consider the EMA's are the resistance level for profit taking.

Both the oscillators are in a bearish region. Hoping back from the bearish region, RSI and CCI have formed a bullish divergence which needs to be absorbed in the market, due to which market started moving up. This divergence may have a long term effect given its formed at a major level and a daily time frame.

The cryptocurrency market is in a spiral due to the uncertainity in the political arena. We might see a dip down further, which in case, we have a stop loss placed.

Chainlink on the move

Feb 27 2022

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