Chainlink prices bounce higher alongside Bitcoin

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• Chainlink presented the possibility of a rally dependent on market-wide sentiment
• A move above $7.7 and retest could offer a buying opportunity targeting $8-$8.5

Chainlink [LINK] showed bullish promise after the buyers forced recovery from the $7 support zone. If Bitcoin [BTC] can climb past the $30.2k mark, it is possible that LINK could break out past the multiple crucial resistance levels overhead. Yet, a BTC slump could erase the recent gains Chainlink bulls achieved.

Read Chainlink’s [LINK] Price Prediction 2023-24

On the 1-day price chart, despite the structure, Chainlink has been in an uptrend since early July. The pullback to $7 could be followed by a healthy rally, but an enormous resistance zone in the $8-$9 area would oppose the long-term plans of the buyers.

Source: LINK/USDT on TradingView

The 4-hour chart showed that Chainlink bulls were in the ascendancy again. The bullish market structure break on 7 August was followed by a steady drive upward. The price was $7.47 at press time and was likely to reach $7.71 soon.

The RSI rose past neutral 50 to show bullish momentum. The DMI noted a reading of 21.8 on the ADX and saw the +DI (green) climb past 20, showing a notable uptrend was in

However, in the 1-day timeframe, the market structure was bearish. The most recent lower high was the $7.71 level. This level confluences with an H4 bearish order block as well, highlighted by the red box.

Therefore, it was possible that Chainlink would climb to the $7.7-$7.8 region before facing rejection. On the other hand, a move above the $7.9 level could be used to enter long positions targeting $8.8 and $9.5.

Realistic or not, here’s LINK’s market cap in BTC’s terms

The short-term sentiment was bullish once more as speculators flock to the market

Source: Coinalyze

On 7 and 8 August Chainlink prices climbed higher, accompanied by a swift upsurge in the Open Interest chart. This showed speculators were willing to bid for the token and signaled strong bullish sentiment. The spot CVD halted its descent but was unable to climb higher.

Taken together, the price action and short-term sentiment showed bullish strength. Yet, whether this can see LINK rally beyond $7.7 to reach $8, $8.8, and $9.5 remained to be seen.