Bitcoin and Chainlink – Weekly Technical Analysis – October 12th, 2020

Chainlink

Chainlink rallied by 15.70% in the week ending 11th October. Reversing a 12.95% loss from the previous week, Chainlink ended the week at $10.8756.

It was a mixed start to the week. Chainlink rose to a Monday high $9.7076 before hitting reverse.

Falling well short of the major resistance levels, Chainlink fell to a Tuesday intraweek low $8.3827 before making a move.

While steering clear of the first major support level at $7.99, Chainlink fell through the 62% FIB of $8.5.

Finding support on Wednesday, Chainlink rallied to a Sunday intraweek high $11.0437 before easing back.

Breaking back through the 62% FIB, Chainlink also broke through the first major resistance level at $10.94.

A Sunday pullback, however, saw Chainlink wrap up the week at sub-$10.90 levels.

6-days in the green that included a 9.01% rally on Friday delivered the upside. An 8.86% slide on Monday limited the upside for the week, however.

For the week ahead

Chainlink would need to avoid a fall through the $10.10 pivot level to support a run at the first major resistance level at $11.82.

Support from the broader market would be needed, however, for Chainlink to break out from last week’s high $11.0437.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of a breakout, Chainlink could test resistance at $12.00 before any pullback. Chainlink will likely fall well short of the second major resistance level at $12.76 and the 38.2% FIB of $12.9, however.

Failure to avoid a fall through the $10.10 would bring the first major support level at $9.16 and 62% FIB of $8.5 into play.

Barring an extended crypto market sell-off, however, Chainlink should steer clear well clear of sub-$8.5 levels.

At the time of writing, Chainlink was down by 0.91% to $10.7764. Chainlink fell from an early Monday morning high $10.8667 to a low $10.6968.

Chainlink left the major support and resistance levels untested at the start of the week.

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