Former Goldman Sachs executive Raoul Pal says Bitcoin is currently trading at a highly critical juncture weeks after the leading crypto asset plunged to a yearly low of $30,681.
In a new tweet, the macro guru tells his 552,700 followers that BTC is flashing signals indicating that a reversal is on the horizon. According to Pal, Bitcoin risks extending its corrective period if it fails to confirm the signal.
[adinserter block="1"]“I find DeMark Indicators work well for me for assessing probabilities. The weekly 9 on the log trend line in BTC feels about the right chance of a reversal higher. If this fails over a few weeks (lower odds), it will lead to much longer pain. Let’s see…”
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 trend reversal could be in sight.
The Global Macro Investor (GMI) chief executive adds that Bitcoin appears to be mirroring its market structure when it recovered from the coronavirus-induced collapse last year.
“That is in line with my work from GMI…”
Pal also highlights that the current dip resembles the massive correction in 2013 before Bitcoin went on a meteoric 900% rally from $100 to $1,000.
Although Pal is long-term bullish on Bitcoin, he says that another leg down is within the realm of possibilities.
“Could still have one last stab lower but maybe not. March 2020 didn’t have five waves down either.”
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