Raoul Pal, a former Goldman Sachs executive and macro expert, suggested that the US stock index S&P 500 will end its downtrend and go up. Pal stated that cryptocurrencies Bitcoin and Ethereum will also increase in value. He predicted that the S&P 500 would enter the oversold region and institutional buyers would take advantage of this situation to buy. According to Pal, this will set the stage for how much the stocks can drop and the recovery will begin in September.
Pal stated that Bitcoin is giving signals that it will soon enter an uptrend. He stated that Bitcoin has fallen over the past week and retested the support level around $25,200, and the DeMark sequential indicator and Relative Strength Index (RSI) are giving strong signals that Bitcoin will go up. RSI is a momentum indicator that aims to determine whether an asset is overbought or oversold. The DeMark sequential indicator, on the other hand, aims to identify turning points in the market with values that indicate a possible trend reversal.
Pal stated that Ethereum is signaling bullish on the RSI indicator and is in an oversold state. Pal added that Ethereum has formed a large bull flag formation. The bull flag pattern is a technical pattern that indicates that an asset is in the middle of consolidating before resuming an uptrend. As a result, macro expert Raoul Pal predicted that the US stock index S&P 500, as well as Bitcoin and Ethereum, would be bullish. Pal stated that cryptocurrencies in particular are in an oversold state and this situation can be considered as a buying opportunity.