Leading economist and investor Raoul Pal shared his thoughts on the dynamics of the crypto market today and explained why the market looks great for the bulls.
“It’s hard not to be extremely bullish about the next few months. Almost every crypto chart is coiled for a big move after months of consolidation (a market with a very high potential to make a strong move in one direction) and it looks ready. Here are two charts that are important to me right now.”
Big move after big consolidation
The famous economist shared the cryptocurrency aggregate market cap chart, which was first displayed on a logarithmic scale.
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
— Raoul Pal (@RaoulGMI) October 2, 2021
According to this chart, the crypto market cap touched the lower border of the ascending channel and found support. Thus, the bullish trend is confirmed and the crypto markets may increase 3-6 times in the coming months.
The entire market is almost ready to exit the ‘overbought’ phase and enter the ‘oversold’ phase. Therefore, the economist expects a rapid increase in crypto volume in 2022.
At press time, the total market cap of the cryptocurrency market stands at $2.13 trillion, 16% lower than the all-time high recorded on May 12, 2021, according to CoinMarketCap data.
Second, Pal noted that he noticed a “cup-to-handle” technical analysis pattern on the chart, which shows the volume of all cryptocurrencies except Bitcoin (BTC) and Ethereum (ETH).
Pal claims that this chart is bullish after crossing the $900 billion level. Therefore, all cryptocurrencies seem to be “coiled” to it; including low volumes.
“Almost every chart of every crypto seems equally coiled under appreciated projects, even in small volumes. […] Fasten your seat belts and good luck.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.