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A widely followed cryptocurrency analyst is predicting a sharp rally in three digital assets fueled by short selling.
Crypto strategist Michael van de Poppe shares a tweet by financial researcher Jason Goepfeldt to his 628,000 Twitter followers.
According to Goepfert, retail traders have spent $18 billion on put options and amassed $46 billion worth of short positions in index futures, both record settings.
Van de Poppe To tell A record amount of short positions in traditional markets is actually a bullish signal.
“Short squeeze came in.”
A short squeeze is when a trader who borrows a unit of an asset at a particular price and expects to sell it lower (short) to pocket the difference is forced to buy back when the trade moves against the bias. It occurs when
Crypto analysts expect Bitcoin (BTC) to follow suit as Van de Poppe predicts an uptick in traditional markets.
Bitcoin has held a significant area around $18,500 and is now about to break out of this range.
Another $19,500 test (probably Monday) and we’re all set.
A significant barrier to hold: $18,500.
Bitcoin is trading at $18,887 at the time of writing.
Ethereum (ETH) is next, according to Van de Poppe, holding support at $1,200.
Ethereum, formerly a resistance area, is still supported.
Interesting though. We need to hold out here and test the $1,425-$1,450 area.
At the time of writing, Ethereum is worth $1,305.
Crypto analysts are also keeping a close eye on the decentralized oracle network Chainlink (LINK). According to Van de Poppe, LINK may be scheduled for a short pullback before igniting the next leg lift.
“The two levels I’m seeing on LINK (and I think it’s going to be $12-15 soon).
Resistance around $8 to be tested will be a scalp short.
A swing long is around $7.
At the time of writing, LINK is trading at $7.77, up more than 2% on the day.
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