While Bitcoin stabilizes around the $43,000 mark, with no significant global shifts observed yet, we present a detailed market analysis for the altcoins Avalanche (AVAX) and Chainlink (LINK) as of Tuesday, February 6.
Avalanche (AVAX)
At the moment, AVAX does not show a definitive local trend. The asset is trapped between a support zone of $30.8–$33.0 and a resistance zone of $37.0–$39.6, where it has hovered for nearly two weeks.
If the bullish scenario consolidates (for instance, by securing a position above the $39 mark), the coin could challenge the next selling zone at $42.4–$45.0 and potentially edge closer to its local high at $47. Nevertheless, this outcome hinges on Bitcoin's performance due to AVAX's high correlation with the leading cryptocurrency.
A deeper AVAX correction might retreat to the subsequent support zone ranging from $25.1–$27.9.
AVAX chat on the H4 timeframe
Chainlink (LINK)
Finally breaking free from its support levels, LINK's price has embarked on a notable ascent, reaching a yearly high of $19.77. The coin now trades near the resistance zone of $19.30–$19.77, with further growth appearing as the primary scenario.
Should this upward trend be affirmed, the asset might soon surpass the existing resistance and set a new high. The next seller's level to watch is $21.
While a correction for LINK could occur, it's unlikely that the coin's price will fall below the $17.2–$17.8 zone in the forthcoming weeks. A downward trend shift might only be anticipated if LINK firmly settles below the $16.00–$16.63 buyer's range.
LINK chat on the H1 timeframe
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Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) — the price movement between support and resistance levels, without going beyond the given range.
К — simplified designation of one thousand dollars of the asset price (for example, 23.4K – $23,400).
Gray range on the chart — a support zone.
Red range on the chart — a resistance zone.
Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from GN Crypto:
