A widely followed cryptocurrency analyst predicts an abrupt rally for a trio of digital assets: Bitcoin, Ethereum, and Chainlink. The cause of this is attributed to the price push by short sellers.
Cryptocurrency strategist Michaël van de Poppe shared with 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 futures contracts.
Van de Poppe says that the record number of short positions in the traditional market is actually a bullish signal.
A short squeeze occurs when traders Borrow units of assets at a certain price in hopes of selling lower to pocket the spread (short selling) forced to buy back when the trade goes against their expectations.
With Van de Poppe predicting a rally in the traditional market, the cryptocurrency analyst is hoping Bitcoin (BTC) will follow suit.
“Bitcoin has held the key area around $18,500 and is now looking to break out of this range. Another trial is $19,500 (probably Monday). Key hurdle to hold: $18,500. ”
At the time of writing, Bitcoin is changing hands at $18,887.
Followed by Ethereum (ETH), Van de Poppe said the altcoin is working hard to keep support at $1,200.
“Ethereum is still in the support zone, which was previously a resistance zone. Interestingly, though, it will be kept here and test the $1,425-$1,450 area. ”
At the time of writing, Ethereum is valued at $1,305.
The cryptocurrency analyst is also keeping a close eye on the Chainlink decentralized oracle network (LINK). According to Van de Poppe, LINK can record a short-term sale before activating the next leg.
“Two prices that I’m looking at on LINK (and I think we’ll hit $12-$15 soon).
The resistance around $8 will be tested very quickly.
Swing longs around $7. “
At the time of writing, LINK is trading at $7.77, up more than 2% on the day.
See also: Binance Coin [BNB] sets litmus test, keeping an eye on the $280 zone
