A closely followed crypto strategist is predicting a quick burst to the upside for Binance Coin (BNB), likely driven by bears who are betting that the utility token will see sustained downside price action.
Pseudonymous analyst Jack tells his 243,100 Twitter followers that BNB is likely due for a bounce as it trades close to its support at $230.
According to the crypto strategist, BNB bears are piling into the fourth-largest altcoin by market cap, and they will likely serve as fuel for a short squeeze.
“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.”
A short squeeze happens when traders who borrow an asset at a certain price in hopes of selling it for lower to pocket the difference are forced to buy back the assets they borrowed as momentum moves against them, triggering further rallies.
Looking at Jack’s chart, he appears to predict that BNB will surge to $250 before correcting all the way back down to $230.
The chart also shows that BNB bulls will likely ignite several bounces at the support level before it eventually crumbles by July 17th.
Jack adds that BNB is likely setting up for a massive collapse toward the $120 level as it faces multiple issues across the globe.
“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?”
At time of writing, BNB is trading for $236, suggesting a potential decrease of nearly 50% should it hit Jack’s downside target.
The crypto analyst is also keeping a close watch on Ethereum (ETH) rival Solana (SOL). According to Jack, the Solana/Bitcoin pair (SOL/BTC) is likely due for a correction after respecting resistance at 0.0006936 BTC ($21.06).
“I think SOL vs. BTC has some retracing to do here to green. Retest that to see if that DeFi (decentralized finance) season everyone has been speaking about for a long time actually gets some legs.”
Based on the trader’s chart, SOL/BTC could drop to its diagonal support at around 0.00056 BTC ($17), where it could either bounce or plunge all the way down to 0.0003858 BTC worth $11.71.
At time of writing, SOL is trading for $22.21.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
Featured Image: Shutterstock/Milin_ta
Credit: Source link
