Michael van de Poppe, a widely followed crypto analyst, pointed to short selling positions in the Bitcoin and altcoin market. He shared his expectation of a rally fueled by short selling situations for three cryptocurrencies in particular. Here are the details…
Altcoin analyst details short selling prospects
Crypto strategist Michaël van de Poppe quoted a tweet by financial researcher Jason Goepfert. Afterwards, he shared his opinions and conveyed the expectation of “short squeeze” in the market. According to Goepfert, personal traders spent $18 billion on put options. It also recorded $46 billion in short selling on futures. According to the information, both are breaking records. Van de Poppe says the record-breaking open situation in classical markets is actually a bullish signal.
The analyst points out that “short squeeze” came as a result of heavy short selling. A short squeeze is an unusual situation that triggers rapidly rising prices on an asset. Occurs when an asset has a significant short-selling investor. Koindeks.com As we have also reported, this means that many investors are betting on a decrease in price. A short squeeze starts when the price unexpectedly rises. The asset gains momentum when a valuable portion of short sellers decide to cut losses and exit their position.
Did short squeeze happen in Bitcoin?
Van de Poppe claims a rally in the classic markets. On the other hand, he said that he expects Bitcoin (BTC), the largest cryptocurrency, to do the same. Currently, the price of Bitcoin has exceeded $20,000. Therefore, the short squeeze that the analyst was waiting for seems to have happened. Michael van de Poppe’s tweet includes the following words:
Bitcoin held the critical area around $18,500 and now wants to break out of this range. After another test of $19,500 (probably Monday) we’ll be ready to go. A very precious mani to hold stands at $18,500.
Analyst watches Ethereum and Chainlink closely
Next, Van de Poppe talks about Ethereum (ETH), which he says has managed to hold reinforcements at $1,200. According to the analyst, the movement of ETH, which was previously a resistance area, is quite different. He expects the altcoin to test the mid-$1,425 to $1,450 area. At the time of writing, ETH is changing hands at $1,383, quite close to the levels pointed out by the analyst.
The crypto analyst is also closely watching the decentralized oracle network Chainlink (LINK). According to Van de Poppe, LINK will experience a short-term pullback before firing up the next leg. The analyst states that the levels he watches for LINK are $ 12-15. He states that 8 dollars will be tested, and the basis is around 7 dollars. LINK is changing hands at $8.23, up 7.1 percent at the time of writing.