Ex-Goldman Sachs Manager Raoul Pal warns against strong Bitcoin correction
Raoul Pal, CEO of Real Vision, has become one of the loudest supporters of Bitcoin in recent months.
After plunging back into the crypto rabbit hole in 2018, Pal has championed 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.
Recently, he 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:
„Okay, 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 categorize 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 noteworthy that Pal is temporarily going bearish at Cryptosoft and is currently commenting that the chance of a short-term correction is increasing.
Bitcoin allegedly has important technical headwind
Recently he noticed that the Tom-Demark sequence, a well-known time-based technical analysis tool that predicted earlier reversal points of the macro bitcoin, forms 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 analyze 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, small investors were at the forefront of Bitcoin’s pricing action.
Still macro-economically bullish
Although Pal fears a short-term correction, he remains bullish on Bitcoin and crypto currencies in the long term.
Pal emphasizes in a video published by Real Vision, a financial research site owned by him, that the world’s macroeconomic, political and social trends all point to a world in which Bitcoin plays a major role:
„It looks as if we are going to reach that point. I 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 that.“