Real Vision chief executive and Bitcoin advocate Raoul Pal is issuing a warning that a large Bitcoin correction may be on the horizon.
In a series of tweets, the big Bitcoin bull tells his 289,000 Twitter followers that Bitcoin is showing signs that it has reached a local top. Pal is using the DeMark indicator to time entry and exit opportunities. When the DeMark sequential indicator flashes a reading of 9, traders take it as a sign that a pullback is in sight. A signal of 13 points to trend exhaustion.
“Bitcoin is potentially facing some serious technical headways… The daily DeMark is showing a cluster on 2 13s and a 9 and tomorrow might put in ANOTHER 13!”
The macro investor is looking at BTC’s weekly chart as well, which he says is also topping out.
“The weekly is stacking up top counts too… and a larger correction looks very possible.”
Pal highlights that the monthly chart has also printed a DeMark sequential count of 9.
“And concerningly, the monthly has put in a 9 top.”
Pal notes that the confluence of top signals across multiple timeframes points to the possibility of a substantial pullback.
“This all puts the odds of a larger correction in play, not a [certainty], but top patterns across 3 time series are something to take seriously and if you are not a long-term HODLer, you might consider some caution [is] merited.”
Meanwhile, trader and crypto analyst Michaël van de Poppe is also expecting a BTC correction. In a new video, Van de Poppe is outlining the levels that investors should look out for should bears ignite a sell-off event.
“What we see here is still the weekly area around the all-time high, which is the resistance zone. We do have the levels that we’ve initially marked as interesting based on previous resistance levels that are on the weekly timeframe with the most important one around $14,000 to $13,500. So any of these levels are very significant if we get a corrective move. If we’re not getting that, probably we’re going to skyrocket.”
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