Crypto analyst Josh Rager says traders should keep a close watch on one mid-cap altcoin whenever Bitcoin craters.
Rager says that historically, ChainLink (LINK) has proven itself as the altcoin to buy after a heavy BTC correction.
“Never fails – after every major pullback for Bitcoin, LINK pumps like crazy. If you trade any altcoin after a Bitcoin dip – the smart choice would be LINK.”
While ChainLink followed Bitcoin’s lead on Sunday and crashed over 10% in a matter of minutes, bulls immediately bought up the decentralized oracle network. From a low of $7.47, LINK quickly erased losses en route to a 24-hour high of $8.68, according to CoinMarketCap.
Rager says that after the swift recovery, LINK is poised to print a new all-time high.
“What I’m watching right now on the four-hour [timeframe] here is a close back above the high of $8.70. I do believe if LINK can make its way back up above $8.70, test that, close above it, that we are not only going to move up above $9.00 but we can make our way up to $10.00.”
As for Bitcoin, the trader says BTC is showing encouraging signals even after Sunday’s brutal sell-off.
“The good news though is that Bitcoin finally broke up above $10,500 – that same area that has held us below that price since September or earlier in 2019… Bitcoin also bounced at that area so that is a key structure that I’m watching and that goes to show that it is a strong support.”
Meanwhile, Rager is bullish on Ethereum even after dropping nearly 20% from around $400 to $325.
“That’s a huge wick on Ethereum which shows that buyers have stepped in and have pushed the price back up. That looks way better than even the Bitcoin chart. For Ethereum to be so red hot lately and so bullish, for the price to be bought up like that and push this up and make a wick like this, I wouldn’t be surprised if Ethereum continues to make its way back up above $400.”
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