Raoul Pal: Bitcoin Sending Strong Signals That Bulls Will Take Control

According to Raoul Pal, an investment strategist and economist, Bitcoin (BTC) is currently trading within a pattern that indicates that bulls will soon take over the market.

Bitcoin (BTC)

Pal said in a recent video update that Bitcoin is forming a falling wedge pattern, a technical formation that usually signals future bullish momentum.

BTC just hit the bottom of the wedge, Pal notes:

“And that normally would mean we would rise to the top – I’d like to see generally three touches of the wedge. We had three on the downside. We would touch it again on the upside, generally, pull back into the range, and then we go.
That was exactly the kind of pattern that we had in March 2020. We were at the top of the range, we shot straight back into the middle of the range – that was the bicycle. So it doesn’t mean we’re going to go up in a straight line from here, but we probably go up significantly – maybe touch the top of that channel, so maybe we get to $35,000, come back down somewhere, whether it comes back to the low or somewhere in the middle, and that will be the final signal. That’s what I’m thinking.”

At the time of writing, BTC trades at $39,352, up 1.5% on the daily chart.

Ethereum (ETH)

The economist also looked into Ethereum (ETH), showed a chart showing ETH having diagonal support of a descending channel.

“Here’s ETH, and this is on the log chart. And ETH again, the usual chart looks dramatic… Even with all the drama – 8.5% interest rate, war, Russia, LUNA going bust – it still didn’t come to the low of 2020.”