Although Bitcoin still can’t break above $10,000, nor can Ethereum overtake $250, Chainlink continues to set new record high after high. Even today, the crypto asset keeps raising the stakes on its all-time high.
But as new highs are set, the price action has not only triggered but perfected a sell setup on monthly timeframes. Could this latest high be the last for the superstar altcoin for a while?
Chainlink Sets Yet Another New All-Time High, What Will Stop The Altcoin Superstar?
Cryptocurrencies remain stagnant, unable to break above long-term resistance nor have any new lows been set. The only highs and lows Bitcoin is setting currently, are for record-high stability and low volatility.
Meanwhile, Chainlink, a seemingly unstoppable altcoin just set yet another new all-time high. The asset was also the best performing crypto asset last year, and investors fully expect a similar performance this year.
Related Reading | These Altcoins Set a New ATH While Bitcoin And Ethereum Tank
Thus far, they’ve been right. Chainlink sets new record after record, both on the LINKUSD and LINKBTC trading pairs.
In 2020 alone, LINKUSD has surged over 200%. On the LINKBTC trading pair, Chainlink is up over 140% against Bitcoin in 2020, showing strong overperformance.
The rest of the altcoin space has bled out against Bitcoin, but Chainlink has held strong. However, that may soon be coming to an end, just as other altcoins break out from downtrend resistance.
Chainlink Monthly TD 9 Sell Setup | Source: TradingView
Correction Overdue For Ultra Hot Crypto, According To Sell Setup on LINKBTC
Just as LINKUSD set a new all-time high this month at $5.70, LINKBTC also set a new all-time high at 61000 satoshis. However, the high isn’t all high fives and celebrations – it could kick start profit-taking in the altcoin.
The TD Sequential indicator was created by Thomas Demark. The tool is used for market timing, and follows a specific sequence of candles until either a 9 or a 13 count is reached. At that point, depending on the direction of the price action, a buy or sell setup is issued.
The latest pump in Chainlink has perfected a TD 9 sell setup on the LINKBTC trading pair on monthly timeframes. The highest timeframes are given the most weight when it comes to signals.
These signals are considered “perfected” when the 9 candle achieves a higher high or lower low than the previous four candles. Rocketing to a new all-time high makes the signal all the more likely to confirm.
What the indicator doesn’t provide, is what level to sell at. Chainlink is in full price discovery mode and could soar far higher before the month-long sell setup should be taken.
When the final high is reached, however, extended downside against Bitcoin is highly probable given how accurate the TD Sequential indicator has been on cryptocurrencies.
It’s worth noting, however, that the previous TD 9 sell setup on the monthly was followed by an over 200% rally in the month following. Anything is possible in cryptocurrencies when there’s no resistance to stop them.