Bitcoin encountered short-term resistance around $ 49,400 – an area of ​​multiple selling pressures in December, and BTC’s recent surge of just $ 45,500 also pushed the price of LINK higher.

LINK rose from $ 18.16 to $ 22 as of press time. This area is a barrier to price and the bull’s strength will be tested again.

LINK 1 hour price chart

LINK / USDT | Source: TradingView

On the 1 hour chart, the price broke the descending trend line (white) and tested again, then encountered resistance in the supply area of ​​$ 20-20.85 (red). Next, LINK was rejected and lowered to $ 18.15 to test demand. After LINK found a buyer, it returned to the $ 20 range.

The price has not been able to break out of this area since the first cancellation on the 13th, but has since formed a higher low. The volume is still stable and the hammer candle formation yesterday shows that the bulls are very strong, possibly breaking out on the final test. As expected, the price has risen nearly 7% in the past 24 hours and is now trading above $ 22.

Analytical basis

LINK / USDT | Source: TradingView

On the price chart, we can see the 21 SMA (orange) as support, with a hammer forming to see if buyers are fueling this short-term rally. The SMA 21 is above the SMA 55 (green) and shows bullish momentum.

The RSI also stays above the neutral 50 level, reinforcing the idea of ​​bullish momentum. A bearish divergence formed recently but has since pulled back and may resume bullish momentum.

OBV has taken a higher low along with price for the past few days and has 2 levels of resistance. OBV above these levels shows that buyers are still strong.

Conclude

Momentum on the lower timeframe has turned up and buying pressure appears to be driving this rally. Above the $ 20 area, the $ 22 level has strong effects over longer periods and is expected to be an area sellers will step into. Therefore, the price should test the local high of $ 23.22 in the short term.

If this scenario plays out in the next few days, LINK could gain momentum to push the price up, towards the $ 25 area as resistance, and also to a significant level of liquidity in high time frames.

You can see the prices LINK here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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