Bitcoin enthusiasts are waiting for the halving which is only a few hours away. The crypto market is flooded with all kinds of predictions amidst the really volatile market these days.
Raoul Pal from Global Macro Investor breaks down the potential paths ahead for Bitcoin.
Bitcoin is in one of the best positions
He said that the king coin is currently in one of the best positions of any asset that he’s ever seen.
He says that BTC is trading inside a “perfect wedge” that he believes is a precursor to a massive new bull run.
The first depiction of the wedge using traditional charting techniques has BTC targeting $40k.
In the long run, Pal sees BTC hitting $1 million.
Bitcoin Porn and The Perfect Set Up… $BTC #BITCOIN
Chart 1 – The Perfect Wedge.
If you use classic charting techniques, it gives you a price target of around $40,000…but 1/2 pic.twitter.com/Q2pYRJtnIP
— Raoul Pal (@RaoulGMI) May 8, 2020
Chart 2 – The Perfect Wedge on a Log Chart
Well, that gives you a price object for this run potentially (key word – potentially) of $1m. pic.twitter.com/ZDJXsrbbVN
— Raoul Pal (@RaoulGMI) May 8, 2020
Pal says that Bitcoin is displaying a move to $400k – $1 million. His analysis is pretty similar to the one of PlanB.
“Whatever plays out, after a key technical break like today, the probability of vastly higher prices has risen dramatically. And this is confirmed by the stock to flow models by PlanB and the breakout has happened almost exactly at the halvening,” he said.
This is the one of the best set ups in any asset class I’ve ever witnessed…technical, fundamental, flow of funds and plumbing. All. Now.
Again, to be clear, even if it has 90% odds, doesn’t mean its definitely going to work…I can and will be wrong…often and dramatically.
— Raoul Pal (@RaoulGMI) May 8, 2020
Pal said that he’s got 25% of his liquid net cash in BTC, and 25% in gold. He’s reserved another 25% for trading and he plans to keep his last
Pal says he recently allocated 25% of his liquid net cash to Bitcoin, along with 25% to gold. He’s reserving another 25% for trading opportunities and plans to keep the last 25% in cash.
