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 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

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.