Ex-Goldman Sachs manager Raoul Pal warns of severe Bitcoin correction

Raoul Pal, CEO of Real Vision, has become one of the loudest supporters of Bitcoin in recent months. After diving back into the crypto rabbit hole in 2018, Pal has been campaigning for crypto currencies on several channels: through his Twitter account, followed by over 200,000 followers, in Bloomberg interviews and through his financial research followed by Wall Street billionaires.

He recently reaffirmed his belief in Bitcoin and crypto-currencies when he announced on Twitter that he had invested 98 percent of his liquid net assets in Bitcoin and Ethereum:

“Ok, last bomb – I have a sell order tomorrow to sell all my gold and buy BTC and ETH (80/20). I don’t own anything else (except some bond calls and some $’s). 98% of my liquid net assets. You see, you cannot categorise me except #irresponsiblylong.”

With an extensive career in top hedge funds and companies like Goldman Sachs, many assume that he has invested tens or even hundreds of millions of dollars in the two leading crypto currencies.

It is worth noting that Pal is temporarily going bearish at Bitcoin and is currently commenting that the chance of a short-term correction is increasing.

Bitcoin has allegedly faced important technical headwinds
Recently, he noted that the tom-demark sequence, a well-known time-based technical analysis tool that predicted earlier reversal points of the macro bitcoin, is a retrograde sign:

“Bitcoin may be facing some serious technical advances… the daily DeMark shows a cluster at 2 13 and a 9, and tomorrow there could be another 13!

The Tom Mark indicator prints “9” and “13” candles when an asset is likely to be near a turning point in its trend.

Tom Demark himself, the person from whom this indicator was derived, has used it in the past to analyse Bitcoin. Demark told Bloomberg in an interview many months ago that the indicator accurately predicted the 2017 high of $20,000, along with macro lows of $3,200 in 2018.

However, there are some who do not have much faith in the indicator, especially as the Bitcoin market has changed structurally since previous bull runs.

For example, derivatives data suggest that Bitcoin’s recovery over the past two months has been driven almost exclusively by institutional players. Previously, it was retail investors who led Bitcoin’s price action.

Still macroeconomic bullish
Although Pal fears a short-term correction, he remains bullish on Bitcoin and crypto currencies in the long term.

In a video published on Real Vision, a financial research site he owns, Pal stresses that the macroeconomic, political and social trends of the world all point to a world in which Bitcoin plays a major role:

“It looks as if we will reach that point. I have said that this is the point where macro, crypto, politics, everything comes in the same big bucket. It is all concentrated and our pure focus at the moment. We know that Bitcoin has a role to play in this.”

This entry was posted on 6. December 2020, in Bitcoin. Bookmark the permalink.