Bitcoin hits two-month high while Chainlink's onchain volume rises above $4 billion
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Chainlink's onchain transaction volume has jumped to record highs above $4 billion, according to glassnode.
The non-price metric rose stood around $500 million in May 2019.
An onchain transaction is a transfer of cryptocurrency value (LINK) that is broadcast to the network and collected into blocks.
So, the surge in the onchain volume seen since May 2019 represents increased network activity.
The improvement in the onchain metrics, however, failed to translate into price gains. LINK fell by 48 percent in the second half of 2019, apparently following bitcoin, the anchor for broader markets, fell by more than 50 percent.
Currently, LINK is priced at $2.24 on Coinbase, up 27 percent on a year-to-date basis. Meanwhile, bitcoin is up 19 percent.
LINK's outperformance has triggered speculation that the rise in the onchain volume is drawing bids for the cryptocurrency.
Seasoned traders, however, would point out that cryptocurrency prices seldom take cues from onchain metrics like transaction volume, except in case of reward halving, which has boded well for bitcoin in the past. |
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Two-Month Highs
BTC: Price: $8,500 | Market cap: $156 billion | 24-Hr Volume: $31 billion
Trend: Bullish Bitcoin jumped to a two-month high of $8,580 during the Asian trading hours, bolstering the bullish setup, as indicated by an inverse head-and-shoulders breakout on the daily chart and a falling channel breakout on the weekly chart.
The cryptocurrency has rallied nearly 30 percent since bottoming out at $6,425 in December. Even so, there are no signs of buyer exhaustion on the daily chart.
So, bitcoin looks set to maintain its recent upward trajectory and could rise to the 200-day average at $9,097 over the next few days.
On the downside, the former-resistance-support of $8,200 is a key level to defend for the bulls. A violation there would weaken the short-term bullish case and could bring additional losses. That said, the outlook would turn bearish only if prices violate the higher lows setup with a move below $7,667 (Jan. 10 low).
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| | | | Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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