Raoul Pal wants Bitcoin (BTC) investors to mobilize their deals against Elon Musk. The macro-investment strategist advised traders to do so Earn or keep your Bitcoin holdings Just like the flagship’s cryptocurrency fell massively over the weekend and earlier this week.
In retrospect, Bulls came under pressure after Elon Musk shook up the crypto market. May 12th, The billionaire businessman followed his firm Tesla’s decision to accept bitcoin payments for his electric vehiclesciting environmental issues related to the bitcoin mining industry.
Yet, noted that Tesla would continue to have more than $ 1 billion worth of Bitcoin on its balance sheet. The company disclosed such an investment in cryptocurrencies in its securities filing in February 2021.
But over the weekend, Musk indicated another 180 degree turn. He recorded an alleged cryptocurrency scammer on Twitter when he spoke of the possibility that Tesla could bring all of its $ 1.5 billion worth of Bitcoin to market.. Musk responded “effectively,” leading traders to believe that he was effectively selling all of Tesla’s bitcoin holdings.
Musk later clarified that Tesla didn’t sell its bitcoin.
But the damage was done. When the price of bitcoin fell Musk’s comments sparked a Twitter dispute with the Bitcoin community that led well-known crypto influencer Anthony “Pomp” Pompliano to refer to the CEO of Tesla as an “emotional billionaire.”
We expected nation states and central banks, but instead got an emotional billionaire with a Twitter account.
to???? Pomp (@APompliano) May 16, 2021
On the other hand, Pal suggested that Bitcoin traders ignore the “weekend FUD” and focus on the cryptocurrency’s strong technical setup.TO
“After the weekend FUD festival and shitty fights, we’re getting back to the bottom line. BTC is most likely forming a wedge … a perfectly normal and healthy correction […] So when you have dry powder add it. If you don’t have it. HODL “.
Anatomy of Pal’s Bitcoin tweet
BTFD is a retro acronym for “Buy the F *** ing Dip” or “Buy the Damn Dip” – which causes traders to accumulate more assets as their prices drop. Meanwhile, Pal looked very upbeat on the latest Bitcoin correction after spotting a falling wedge pattern.
Falling wedges are bullish reversal patterns. They occur when price tends to fall within an area defined by two descending trend lines as the highs and lows of the reaction formed on them converge.
Usually at the maximum length of the wedge, the price breaks above the upper trend line. The technical theory underpins Pal’s upward trend in Bitcoin.
A mirror image of Tradingview’s Pal BTC trade build shows that the BTC / USD pair could gain nearly $ 14,000 on the next uptrend.
In the meantime, Fundamentals like network hash rate and other metrics remain bullish on the Bitcoin market. However, some macroeconomic factors can also give Bitcoin a boost, especially when the dollar is falling.
Likewise, The Federal Reserve will publish the minutes of its April meeting on WednesdayThis suggests the central bank will keep interest rates close to zero and buy government bonds and mortgage-backed securities at a monthly rate of $ 120 billion at least until 2023.
“We hope the minutes … reiterate that policymakers view the rise in inflation as temporary.”said Kim Mundy, a currency strategist at the Commonwealth Bank of Australia in Sydney. Mundy also told Reuters:
“The result is that we don’t expect (the Fed) to consider scaling back asset purchases anytime soon. The dollar is expected to resume its downtrend this week after last week’s CPI surge.”