The bloodshed in the cryptocurrency market does not stop. The leading crypto Bitcoin (BTC) saw the levels of 20 thousand dollars. Leading altcoin Ethereum is struggling above $1,000. In this environment, economist Raoul Pal says he has doubled his crypto position.
According to Raoul Pal we are in the buy zone in crypto!
Real Vision CEO and macro expert Raoul Pal tells his 955,000 Twitter followers, “Covering markets get big discounts.” Pal says he is adding to his crypto positions to take advantage of these discounts.
The famous economist states that in a longer period of time, things are definitely likely to get worse. However, he notes that Bitcoin is approaching a major ‘buy zone’. Raoul Pal explains:
But could things get worse? Definitely. But for my investment framework, we are in buy territory. 2 standard deviations (logarithmic) stands in the immediate vicinity of the regression channel.
Source: Raoul Pal / Twitter When will the bottom for bitcoin come?
The famous economist, whose views we have included in the news of Kriptokoin.com, draws attention to two indicators. He cites the relative strength index (RSI) and the DeMark indicator, which uses a mathematical formula to determine inflection points in price. Raoul Pal says that the indicators strongly suggest that a reversal, or at least a bottom, is imminent for Bitcoin. Based on the metrics, the economist makes the following assessment:
Weekly RSI is at $31,000 and the lowest ever $28,000. This shows that the lowest level is at a striking distance. However, never expect to nail the low end. Weekly DeMark charts show the low to be in the next week or next 5 weeks.
Source: Raoul Pal / Twitter Raoul Pal: I’ll start taking this time!
Raoul Pal says the odds are now in favor of the bulls, although the indicators have never been anything but firm. He notes that he is preparing to distribute more capital next week and until next month. The macro guru uses the phrases:
Could all this fail? Definitely. Can crypto trade sideways for a year or two? Certainly. But we are in the game of probability, not the game of certainty. I am comfortable with possibilities and it fits perfectly into my framework. Just like in March 2020. I am preparing to add significantly to my crypto positions. It will probably start next week and by July.
The renowned economist’s updated outlook adds credence to the long-term bullish stance on crypto. He says he had ‘irresponsibly long’ positions in Ethereum (ETH) late last year, which was bigger than anything else in his career.
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