Trader Issues Warning on Ethereum-Based Altcoin After Major Rejection, Updates Outlook on Bitcoin (BTC)

A widely followed crypto analyst is warning that an Ethereum-based (ETH) altcoin could crash after being rejected from a key level.

Pseudonymous crypto strategist Rekt Capital tells his 384,800 followers on social media platform X that decentralized oracle provider Chainlink (LINK) has broken below the diagonal support of an ascending channel chart pattern.

Rekt Capital notes that LINK needs to hold its immediate support at around $13.50 to avoid a deeper corrective move.

“LINK: rejected by the base of the structure.

This confirmed the breakdown from the blue market structure. As a result, LINK is likely to trend towards the lower end of the red zone again.

You have to stay there to avoid a downward phase.”

Source: Rekt Capital/X

At the time of writing, LINK is trading at $13.65, up over 2% in the last 24 hours.

Coming to crypto king Bitcoin (BTC): Rekt Capital says it envisions the largest crypto asset by market cap going parabolic in 2024 following the April halving.

The halving, which cuts BTC miners' rewards in half, is an event that has coincided with Bitcoin bull runs in the past.

Rekt Capital says:

“BTC: Time for a pre-halving correction is running out (orange).

Then there will be the pre-halving rally (light blue).

Then dip before the halving (blue circle).

Then after the halving, renewed accumulation (red).

Then parabolic uptrend after halving (green).”

Source: Rekt Capital/X

The analyst further notes that BTC has successfully flipped the top of its trading range into a support zone, setting the stage for a rise above $45,000.

“Bitcoin successfully retested the top of the pattern to confirm the breakout. Technically speaking, the price is therefore positioned for a continuation of the trend.

Now it’s just a matter of continuing.”

Source: Rekt Capital/X

Bitcoin is trading at 44,128 at the time of writing, up slightly in the last 24 hours.

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