Recently, a significant crypto analyst has predicted a rapid increase in Binance Coin (BNB) value, which may be influenced by bearish investors who believe that the token will continue to decrease in price.
Short squeeze for Binance Coin (BNB)The analyst, known as Jack, who has 243,100 Twitter followers, suggests that BNB is expected to rebound soon as it currently trades close to its support level of $230.
As per the crypto strategist, there is an increase in the number of BNB bears who are investing in the fourth-largest altcoin based on market capitalization. This may lead to a short squeeze, fueled by their activity.
“Rejection of supply yesterday, at range low, squeezes are opportunities for positioning so far, and shorting range low puts you at risk of getting squeezed. Lots of open interest piled up overnight with shorts paying a premium.”
Based on Jack’s chart analysis, it seems that a short squeeze might occur. This happens when traders borrow an asset, hoping to sell it later at a lower price to make a profit.
However, if the market momentum goes against them, they may be forced to buy back the borrowed assets, causing a surge in price.
Jack’s chart predicts that BNB will reach $250 but will then correct to $230. The chart also indicates that there may be multiple bounces at the support level before a possible collapse by July 17th.
According to Jack, it seems that BNB may be on the verge of a significant decline towards the $120 mark due to various issues it’s currently encountering worldwide.
“Considering Binance regulatory pressure, withdrawal from a lengthening list of western countries, changes to rewards and card perks and/or discontinuation in a bunch of countries, legal costs and whatnot, how realistic does this feel to you?”
In other news, an important crypto analyst is outlining key price levels where he believes crypto bulls would step in and trigger reversals for Ethereum (ETH), Binance Coin (BNB), and Litecoin (LTC).
In a new video update, analyst Michaël van de Poppe said not too long ago that Ethereum is at risk of further downside unless it can reclaim support at $1,785.
“This entire area of $1,785 is something we need to sustain. Otherwise, we are going to look at a case that I think we are going to retest the area around $1,600 and have the reversal taking place.”
