Investor Raoul Pal: Bitcoin Price Chart Forms “Falling Wedge”, Buy or Hold

Investment strategist Raoul Pal suggests that traders should probably buy bitcoin as the price drops to a two-month low.

Raoul Pal wants bitcoin investors to pool their trades against Elon Musk. With bitcoin suffering a sharp drop over the weekend and early this week, the macro investment strategist is advising traders to stock up or keep their bitcoin holdings.

Investor Raoul Pal: Bitcoin Price Chart Forms "Falling Wedge", Buy or Hold

Bitcoin fell 16.92% over the weekend and on Monday Source: TradingView

In retrospect, bulls came under pressure after Elon Musk began disrupting the cryptocurrency market. on May 12, the billionaire entrepreneur reversed his company Tesla’s decision to accept bitcoin payments for its electric cars, citing environmental concerns related to the bitcoin mining industry.

Nonetheless, he noted that Tesla will continue to hold more than $1 billion worth of bitcoin on its balance sheet. Tesla disclosed the aforementioned cryptocurrency investments in a February filing with the U.S. Securities and Exchange Commission.

But over the weekend, Musk made a 180-degree turn. He exchanged tweets with an alleged cryptocurrency scammer when he discussed the prospect of Tesla dumping all of its $1.5 billion in bitcoin on the market. Musk responded that “yes,” prompting traders to believe that he would indeed sell all of Tesla’s bitcoin holdings.

Musk later clarified that Tesla was not selling its bitcoins.

But the damage has been done. As the price of bitcoin fell, Musk’s comments led to a Twitter spat with the bitcoin community, prompting prominent investor and cryptocurrency influencer Anthony Pompliano to call the Tesla CEO an “emotional billionaire.

On the other hand, Pal advised bitcoin traders to ignore the “weekend FUD” and focus on the cryptocurrency’s strong technicals, which indicate a bullish breakout, stating.

“After the weekend’s FUD, let’s get back to what’s important. Buy on the dips. Bitcoin is likely forming a wedge …… A perfectly normal correction. So, if you have ex, buy. If you don’t, hold.”
Dissecting Pal’s Bitcoin Tweets

“BTFD” is an acronym for “buy on the dip,” which means traders should accumulate more assets when the price drops. At the same time, Pal seems to be very bullish on the recent bitcoin correction, as he has spotted a “falling wedge”.

A falling wedge is a bullish reversal pattern. They occur when the price moves lower within the range defined by two downward sloping trendlines. Connecting the short-term highs creates a downward-sloping upper resistance line; connecting the short-term lows creates a downward-sloping lower support line. A falling wedge is more likely to eventually break out to the upside.

It usually results in the price breaking the maximum wedge length of the upper trendline. This technical theory is the basis for Pal’s bullishness on bitcoin.

Investor Raoul Pal: Bitcoin Price Chart Forms "Falling Wedge", Buy or Hold

Bitcoin Wedge Formation Suggests Bullish Breakout Ahead Source: Twitter Bitcoin trading analysis from TradingView’s Pal shows that the BTC/USD rate could rise nearly $14,000 on the next upside breakout.

Meanwhile, fundamental indicators such as network counting power continue to send bullish signals in the bitcoin market. However, a number of macroeconomic factors could also provide a boost to bitcoin, especially in light of the falling U.S. dollar.

In addition, the U.S. Federal Reserve will release the minutes of its April meeting on May 19, and is expected to say that the Fed will keep interest rates at near-zero levels and buy government bonds and mortgage-backed securities at a rate of $120 billion per month – at least until 2023.

Kim Mundy, currency strategist at the Commonwealth Bank of Australia in Sydney, commented: “We expect the minutes …… will reiterate policymakers’ view that the pickup in inflation is too temporary”. mundy also told Reuters.

“As a result, we do not expect (the Fed) to consider tapering its asset purchases any time soon. The dollar is expected to resume its decline this week, spurred by last week’s consumer price index (CPI).”

Posted by:CoinYuppie,Reprinted with attribution to:
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