Former Goldman Sachs executive and current Real Vision CEO Raoul Pal believes the Bitcoin correction could last for two more weeks.
In a new tweet, the macro guru tells his 417,900 followers that the leading cryptocurrency is trading inside a corrective pattern.
According to Pal’s chart, Bitcoin might potentially lose over 17% from its current value of $48,689 as it is poised to revisit support around $40,000. The Real Vision head offers one simple explanation for his gloomy BTC forecast.
“And that fits with the seasonals for first 2 to 3 weeks of March. Tax season has an impact.”
While Pal is short-term bearish on BTC, he still maintains his rosy long-term outlook on the leading cryptocurrency as he believes it will eventually “moon.”
“The time to be optimistic is in corrections, not on the way up, that is hubris.”
When asked if he is adding to his crypto portfolio, Pal says that he’s out of dry powder.
“No cash left but if I did, I would.”
In December, the Bitcoin bull sold his entire gold holdings to place a huge percentage of his liquid net portfolio into Bitcoin and Ethereum. A month later, Pal revealed that he’s allocating 5% of his portfolio to smaller cap crypto assets, which he refuses to name publicly.
PayPal co-founder suggests he’s underinvested in Bitcoin while it records new ATH
Bitcoin [BTC] did it once again. The asset broke its own record and caught the attention of the entire globe. Amidst this, PayPal’s co-founder, Peter Thiel expressed his angst over being “underinvested” in the world’s largest cryptocurrency.
The crypto industry as a whole garnered immense popularity over the last couple of years. From being closely regarded as an instrument that carries out illicit activities, to being adopted by governments across the globe, Bitcoin has certainly come a long way. Now, with a market cap of $1.2 trillion, Bitcoin stands as one of the most prominent currencies in the world.
Earlier today, BTC pushed past its previous all-time high of $64,899 and managed to hit a new high of $66,930.39. While BTC HODLers rejoiced this surge, an array of people were rather disappointed that they hadn’t poured in their money into the king coin. One of them was PayPal’s co-founder Peter Thiel.
PayPal’s co-founder talks crypto
During a recent interview, PayPal’s Thiel revealed why he felt underinvested in the asset. He added,
“You’re supposed to just buy Bitcoin. I feel like I’ve been underinvested in it.”
The latest move of Bitcoin was lauded by the entire market. Speaking about the effects of BTC’s ongoing rally, the PayPal co-founder suggested that “we are at a complete bankruptcy moment for the central banks.”
An array of people took to Twitter and made their own predictions about Bitcoin. While some suggested that BTC was slated to endure a major fall, a few others noted that the coin could be aiming for $70K. Tesla’s Elon Musk had a rather bizarre prediction for the coin.
The Tesla CEO’s latest tweet read,
Bitcoin’s rally certainly paved the way for several altcoins hitting new highs. Ethereum PETH], the second-largest cryptocurrency followed the footsteps of BTC and managed to hit an all-time high of $4,366.
PayPal has played a major role in the crypto-verse in the last year. From opening doors to crypto and constantly remaining bullish about it, has pushed several assets to a new level.
This Catalyst Could Trigger Long-Term Bitcoin Rally
Bitcoin is surrounded by all kinds of optimistic predictions these days especially since the king coin managed to smash through all-time highs the other day.
At the moment of writing this article, BTC is trading in the green, and the king coin is priced at $65,933.90.
This trigger could boost Bitcoin
Popular analyst Benjamin Cowen just said that one overlooked catalyst could ignite a big long-term rally for Bitcoin (BTC).
During a new strategy session, the analyst analyzes the dollar index (DXY), which compares the US dollar against a basket of other major fiat currencies.
As the online publication the Daily Hodl highlighted, a weaker dollar can often imply higher prices in many assets.
He also said that one thing that could put extra bullish energy behind Bitcoin is the DXY beginning a macro trend downward.
Cowen explained that the DXY is potentially on the edge of a bearish trend as it gets rejected from its 100-week simple moving average (SMA).
“Ideally speaking, in order to really be the best conditions for Bitcoin, we’d like to see this keep coming on down. This would be the best condition for Bitcoin and here’s the crazy thing when you talk about the US dollar currency index… Look at the actual macro range.”
He said that despite a rising DXY during the majority of Bitcoin’s lifetime, the king has still managed to maintain a long-term bullish structure.
The analyst is also analyzing what could happen if the DXY eventually entered a more considerable downtrend.
“The dollar has more or less moved up during that time. It’s moved up, but there were a couple of key times when the dollar was moving down and that corresponded to Bitcoin bull markets.”
He continued and said the following:
“Imagine what Bitcoin could do if the dollar ended up coming back down… I think that would be incredibly bullish for Bitcoin.”
Bitcoin sheds 6% in battle for all-time high support amid falling funding rates
Bitcoin (BTC) briefly dipped below $63,000 later on Oct. 21 as a standard correction cooled the market.
Bitcoin battles for new support at old peak
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it came off all-time highs above $67,000 to hit lows of $62,860 on Bitstamp.
The roughly 6% drop from its peak came as little surprise to seasoned traders, despite Bitcoin so far failing to create solid support at the site of its previous all-time high of $64,900.
“Bitcoin is still undergoing this retest attempt,” popular trader Rekt Capital wrote in his latest update, suggesting that the old high could still flip to support.
Others took the chance to poke fun at the jittery mood on social media, where various users were getting cold feet observing the retracement.
It's just a joke.
Most of you will get liquidated on a 5% drop anyway so it won't matter what happens after that.— NebraskanGooner📈📈 (@nebraskangooner) October 21, 2021
The return to near $60,000, now the top of a large buy wall, meanwhile served to flush out excessive optimism on derivatives markets.
As Cointelegraph reported, funding rates had skyrocketed overnight, but were slowly returning to more sustainable levels at the time of writing.
Sentiment showed prevailing “extreme greed” among market participants, with the Crypto Fear & Greed Index at 84/100. Historical top scenarios have involved 95/100 or higher.
Altcoins stabilize with Ethereum, Solana leading
Altcoins presented a mixed but altogether more positive picture on the day.
After losing out broadly against BTC, major altcoins were spared a comedown of their own, with Ether (ETH) still above $4,000. Solana (SOL) gained over 25% in the past two days.
Only Binance Coin (BNB) saw any noticeable downwards movement, trading 4% lower over the past 24 hours.
“Total altcoin market cap close to taking out its September high (and ATH). Did not do that in 2017 until mid-Nov,” renowned analyst TechDev noted about the altcoin situation on Wednesday.