Raoul Pal Is Extremely Bullish On Crypto Market For The Next Few Months
Raoul Pal, an ex-Goldman Sachs Executive and The CEO of Real Vision, expects to see Bitcoin and the crypto markets to go through massive growth in the coming months.
The macro guru shared with his 662K Twitter followers that the crypto market is flagging bullish signs all over the board, and he predicts new bull cycles after going through a corrective period.
“I’m finding it very hard to not get extremely bullish about the next few months. Almost every crypto chart looks coiled and ready for a big move after months of consolidation.”
Looking at the Total Market Cap chart, which tracks the market capitalization of all cryptocurrencies, Pal predicts that the total market capitalization could grow as much as 500% in the next year.
“This is total market cap. It is likely ready to move from two standard deviations oversold vs trend to overbought. That looks to me that the entire space can 3x into year-end and 6x into next year (I think the cycle extends).”
This is total market cap. It is likely ready to move from 2 standard deviation oversold vs trend to overbought. That looks to me that the entire space can 3x into year end and 6x into next year ( I think the cycle extends). pic.twitter.com/BwLayLvbj1
The entire crypto market could reach to a capitalization at $6.4 trillion as soon as January 2022, according to Pal’s chart.
Regarding the altcoin market, the market analyst shared a chart that shows the market capitalization of all crypto assets except the two market leaders: Bitcoin (BTC) and Ethereum (ETH).
The Real Vision CEO says that the chart appears ready to start wave three of its cycle, once it clears final resistance at $900 million.
“The outright chart of market cap is ludicrously bullish once it crossed $900 million in market cap and will be an acceleration point. Wave 3 in technical analysis term ushered in by this giant cup and handle/wedge.”
The outright chart of market cap is ludicrously bullish once it crossed $900m in market cap and will be an acceleration point. Wave 3 in technical analysis term ushered in by this giant cup and handle/wedge. pic.twitter.com/xBfpF7sEcy
Pal is looking at the chart from an Elliott Wave theory perspective.
Elliott Wave theory is a form of technical analysis that looks for recurrent long-term price patterns related to persistent changes in investor sentiment and psychology. The theory identifies impulse waves that set up a pattern and corrective waves that oppose the larger trend. Each set of waves is nested within a larger set of waves that adhere to the same impulse or corrective pattern, which is described as a fractal approach to investing.
The first wave is a run up, followed by a correctional second wave that does not rise above Wave 1’s highest point. Wave 3 is typically the biggest and most powerful and rises above the highest point that Wave 1 reached.
