Macro guru Raoul Pal predicts imminent stock market bottom and updates Bitcoin and Ethereum outlook
Former Goldman Sachs chief executive Raoul Pal predicts the stock market will soon bottom after three straight weeks of corrective moves.
In a new blog post, the macro expert says the S&P 500 (SPX) is likely to enter oversold territory as early as this week.
He predicts that institutional buyers will step in to buy on the dips, attempting to bottom the market.
“Furthermore, at this sell-off rate, we will return to oversold conditions for the S&P 500 this week or next…
Keep in mind that retail money has been long this year, but the pros (ie big banks) have not, and they will most likely use this stock correction to cover their deep-water short positions and go long. This should provide a basis for how far stock prices can fall and we expect to be able to reach that limit as early as the next week or two as seasonality begins to improve in September. Let’s see.”
Next up, Pal has his say on Bitcoin (BTC) after the crypto king plummeted along with stocks last week.
He says that the DeMark sequence indicator and the Relative Strength Index (RSI) suggest that Bitcoin will see a bullish reversal soon.
“Bitcoin also fell during the week, retesting key support levels around $25,200. We just launched a new DeMark Daily 9 setup today. These have worked well in the past and signaled a price reversal. Additionally, with a current RSI of 20 (yes, 20!), Bitcoin is the most oversold Bitcoin since June of last year.”
Source: Raoul Pal/The Global Macro Investor
The RSI is a widely used momentum indicator designed to determine whether an asset is overbought or oversold. The DeMark sequential indicator aims to identify turning points in a market, with a reading of nine signaling a possible trend reversal.
Bitcoin is trading at $26,125 at the time of writing, down 0.3% over the past 24 hours.
Pal also says that the smart contract platform Ethereum (ETH) is showing an uptrend on the RSI indicator.
“ETH is also the most oversold as measured by the RSI since June of last year and appears to have formed a major bull flag pattern (bullish) if anything.”
Source: Raoul Pal/The Global Macro Investor
A bull flag is a technical pattern that indicates an asset is in the midst of consolidation before resuming an uptrend.
Ethereum is trading at $1,674 at the time of writing, up 0.1% over the past 24 hours.
Don’t miss a thing – Subscribe to receive email alerts straight to your inbox
Check the price action
Follow us on Twitter, Facebook and Telegram
Surf the Daily Hodl Mix
Check out the latest headlines
 
Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should conduct their due diligence before making any risky investments in Bitcoin, cryptocurrencies or digital assets. Please note that you transfer and trade at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Image generated: Midjourney
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.