The trader who predicted the end of last year’s crypto bull market says he sees one Ethereum (ETH)-based altcoin posting massive gains in the coming months.
Closely followed analyst Pentoshi tells his 615,400 Twitter followers that decentralized oracle network Chainlink (LINK) has been showing relative strength versus the broader crypto markets.
According to Pentoshi, Chainlink is currently trading at a level that served as its staging ground in December 2020 before rallying to its all-time high of $52.20 the following year.
“Above average looking charts at high time frame support on USD [US Dollar] pair dating back to 2020. Will be looking for this as a mid-term play leading into [staking in December].”
At time of writing, LINK is swapping hands for $7.79. A move to Pentoshi’s target of $12.45, as shown in the chart above, suggests an upside potential of nearly 60% for the top oracle network.
Looking at Bitcoin (BTC), Pentoshi says the king crypto is gearing up for wild price swings after months of trading within a narrow range.
“When you look at BTC dominance and BTC itself, everything suggests we are about to have a pretty strong move.
Everything is lining up at the moment. After a month of basically nothing except us yelling at each other over 2% moves, it is time for some volatility.”
As for the possible direction of the big move, Pentoshi believes that Bitcoin is likely poised for a swing to the upside.
“In my opinion, these are signs of short-term bottoming happening at least locally forming. Bear market rally getting ready for the making soon, in my opinion. Again. I’d rather be a buyer at a level like this than shorting. If there’s a great spot to be wrong for me, it’s here.”
According to Pentoshi’s chart, Bitcoin is trading above its weekly support level while forming a possible double bottom pattern, a technical analysis formation that suggests a reversal in BTC’s downtrend.
At time of writing, Bitcoin is changing hands for $20,246, a 3% increase on the day.
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Featured Image: Shutterstock/Mia Stendal
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