According to macro guru Raoul Pal, Bitcoin is showing a bullish signal that previously preceded a 214 percent rally
Former Goldman Sachs CEO Raoul Pal says he’s watching for a signal that has preceded massive Bitcoin (BTC) rallies five times in the past.
In a blog post, the macro guru says that Bitcoin’s 30-day historical volatility has fallen below 20 for the first time since the start of the year.
According to Pal, hitting the 20 mark in the past has set the stage for Bitcoin to see a huge upswing in the coming months.
“After a strong start to the year (60% to 100% up), crypto markets were dead dead over the summer…
This 20’s level has always produced big moves for the following two to four months…
April 2016: +83% in two months
October 2016: +85% in two months
March 2019: +214% in three months
July 2020: +102% in four months
January 2023: +85% in three months.”
Source: Raoul Pal/The Global Macro Investor
Pal also keeps an eye on Bollinger Bands, which is a widely used indicator of volatility. According to the macro guru, Bitcoin’s Bollinger Bands are “currently the tightest on record” as they are also hovering near the 20 level.
“Historically, we’ve only been below 25 for one other month, in April 2016.
Back then, bitcoin rallied 44x to the 2017 high…”
Source: Raoul Pal/The Global Macro Investor
At the time of writing, Bitcoin is worth $26,127.
Looking at Ethereum (ETH), Pal says the leading smart contract platform continues to trade in a bullish continuation pattern despite the market-wide correction over the past few weeks.
“Furthermore, as we highlighted last week, ETH also appears to be forming a major bull flag pattern…”
Source: Raoul Pal/The Global Macro Investor
At the time of writing, Ethereum is trading at $1,636.
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