Top Analyst Says Short Squeeze Incoming, Predicts Rally for Bitcoin, Ethereum and Chainlink
A widely followed crypto analyst predicts a sharp rally for a trio of digital assets driven by short sellers.
Crypto strategist Michaël van de Poppe shares to his 628,000 Twitter followers a tweet by financial researcher Jason Goepfert.
According to Goepfert, retail traders spent $18 billion on put options and accumulated $46 billion in short positions on index futures — both records.
Van de Poppe says that the record number of short positions in the traditional markets is actually a bullish signal.
“Short squeeze incoming.”
A short squeeze occurs when traders who borrow units of an asset at a certain price in hopes of selling lower to pocket the difference (short) are forced to buy back when the trade moves against their bias.
With Van de Poppe predicting a rally in the traditional markets, the crypto analyst expects Bitcoin (BTC) to follow suit.
“Bitcoin held the crucial area around $18,500 and is now looking to break out of this area.
Another $19,500 test (probably Monday) and we’re good to go.
Crucial barrier to hold: $18,500.”
At the time of writing, Bitcoin is changing hands for $18,887.
Next up is Ethereum (ETH), which Van de Poppe says is able to hold support at $1,200.
“Ethereum still on support, which was previously the resistance area.
Interesting though. It should hold here and test the $1,425-$1,450 range.”
At the time of writing, Ethereum is valued at $1,305.
The cryptoanalyst is also keeping a close eye on the decentralized oracle network Chainlink (LINK). According to Van de Poppe, LINK may be due for a short-term pullback before igniting the next stage.
“Two levels I’d see on LINK (and I think we’re heading towards $12-$15 soon).
Resistance around $8 to be tested would be a scalp short.
Swing longs around $7.”
At the time of writing, LINK is trading at $7.77, up over 2% on the day.
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