Chainlink (LINK) and Binance Coin (BNB) at Key Pivot Points
LINK has recently broken through its trendline support, indicating that the market is not ready to move higher. This key support broken at 0.00033267 indicates a growing bearish sentiment, at least in the short term.
On the one hand, this can be seen as the start of a trend reversal wherein the smart money is starting to take profits after a 135% increase in 2 months. This view will be consolidated if LINK/BTC fulfills the double top pattern, breaking down below support at 0.00028080.
On the other hand, this retracement can be seen as a healthy pullback as price waits for further demand. Nonetheless, it is important to consider the price’s rejection at the retest of 0.000333267 and its inability to gather enough strength to push through the bullish trendline’s flipped support (turned resistance).
If the price can break and hold above the trendline in the next few days, it would indicate that the market is looking to move higher. Instead, if it breaks below the bull flag’s support line, then it would indicate that the market appears overbought and is looking to correct.
Following this trend reversal, BNB/BTC has defined a strong uptrend bouncing off the support trendline three times. It faced a strong rejection at 0.0024962, pushing it downwards to the 0.0021 the demand zone where it has found support.
Currently, BNB/BTC is sitting at a key pivot point. If it can break above 0.002266, it is likely to retest the local high to see if the market is ready for further growth. However, if it revisits and breaks below the supporting trendline, it is likely to key support around 0.002.
However, falling through this support, would not signal bearish control because the long-term market structure, currently defined by the higher highs and higher lows being, would not break. Only if this level breaks would bearish control grow, breaking the market structure.