Top Analyst Says Short Squeeze Incoming, Predicts Rallies for Bitcoin, Ethereum and Chainlink

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A widely followed crypto analyst is predicting an abrupt rally for a trio of digital assets fueled 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 have spent $18 billion on put options and accumulated $46 billion worth of short positions on index futures – both record setting.

Source: Jason Goepfert/Twitter

Van de Poppe says that the record-setting amount of short positions in the traditional markets is actually a bullish signal.

“Short squeeze incoming.” 

A short squeeze happens 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 as the trade moves against their bias.

With Van de Poppe predicting a rally in the traditional markets, the crypto analyst is expecting Bitcoin (BTC) to follow suit.

“Bitcoin held the crucial area around $18,500 and is now looking to break out of this range.

Another test of $19,500 (probably Monday) and we’ll be good to go.

Crucial barrier to hold: $18,500.” 

Source: Van de Poppe/Twitter

At time of writing, Bitcoin is changing hands for $18,887.

Next up is Ethereum (ETH), which Van de Poppe says is managing to hold support at $1,200.

“Ethereum still on support, which was previously the resistance area.

Interesting though. It should be holding here and test $1,425-$1,450 area.”

Source: Van de Poppe/Twitter

At time of writing, Ethereum is valued at $1,305.

The crypto analyst is also keeping a close watch on decentralized oracle network Chainlink (LINK). According to Van de Poppe, LINK might be due for a short-term pullback before igniting the next leg up.

“Two levels I’d be watching on LINK (and I think we’ll be going towards $12-$15 soon).

Resistance around $8 to be tested would be a scalp short.

Swing longs around $7.”

Source: Van de Poppe/Twitter

At time of writing, LINK is trading at $7.77, up over 2% on the day.

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