Sunday, June 16, 2024

Bitcoin Showing Bullish Sign Matching Prior 214% Rally: Macro Guru Raoul Pal

Former Goldman Sachs executive Raoul Pal has observed a significant indicator that has consistently preceded substantial Bitcoin (BTC) upswings on five occasions in the past.

In a recently published blog post, the distinguished macro expert articulates that the 30-day historical volatility of Bitcoin has recently dropped below the 20 mark, marking the first instance of such occurrence since the commencement of the year.

Pal expounds that throughout history, the attainment of this 20-level benchmark has consistently paved the way for Bitcoin to embark on a substantial surge in the ensuing months.

“After a robust start to the year, characterized by ascents of 60% to 100%, the cryptocurrency markets have exhibited a period of dormancy during the summer months…

This recurring attainment of the 20-level threshold has invariably precipitated substantial price movements during the ensuing span of two to four months…

April 2016: A remarkable 83% increase over two months.

October 2016: An impressive 85% increase over two months.

March 2019: A staggering 214% increase over three months.

July 2020: An notable 102% increase over four months.

January 2023: A noteworthy 85% increase over three months.”

Pal is also diligently monitoring the Bollinger Bands, a widely accepted gauge of volatility. According to the seasoned macro analyst, Bitcoin’s Bollinger Bands are “presently exhibiting their narrowest range on record,” while closely orbiting the 20 mark.

“There has been merely a solitary instance in history when we observed a value below 25, which transpired back in April 2016.

During that juncture, Bitcoin proceeded to rally an astounding 44 times in the lead-up to the peak of 2017…”

As of the time of writing, Bitcoin boasts a valuation of $26,127.

In regard to Ethereum (ETH), Pal asserts that the preeminent smart contract platform persists in trading within a bullish continuation pattern, even in light of the overarching market correction experienced in recent weeks.

“Moreover, as we underscored last week, it is apparent that ETH is also in the process of forming a substantial bull flag pattern…”

Read Also: Stargate Deploys to Kava Chain Unifying Cosmos-Ethereum Liquidity

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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