Bitcoin has experienced the most significant pullback since March 2020 and is set for a bounce, macro investor Raoul Pal said.
Bitcoin is nearly as oversold as it was in March 2020… pic.twitter.com/ZYHESpW5HG
— Raoul Pal (@RaoulGMI) April 25, 2021
The expert justified his view by the RSI on the weekly chart dropping to levels seen after the corrections during the first leg of the 2017 bull market. He sees the current pullback as a necessary pause to “shake up the market”.
According to Glassnode, the seven-day moving average of the share of Bitcoin addresses in profit fell to a six-month low of 86%.
📉 #Bitcoin $BTC Percent Supply in Profit (7d MA) just reached a 6-month low of 85.938%
Previous 6-month low of 85.989% was observed on 25 April 2021
View metric:https://t.co/j7YdXmPRtr pic.twitter.com/CEiHT0DUrd
— glassnode alerts (@glassnodealerts) April 26, 2021
William Clemente III, an analyst at the analytics firm, noted that on April 26 traders closed short positions on Bitcoin worth $88.7 million in just two hours.
Shorts getting REKT.
$88,696,765 of #Bitcoin short liquidations in the last two hours. pic.twitter.com/2o4FRYK6s2
— William Clemente III (@WClementeIII) April 26, 2021
“Corrections in a bull market are opportunities, not threats. This year promises to be a good one. Good luck!”, Pal wrote.
The expert forecast a decline in the Ethereum-to-Bitcoin ratio ahead of an acceleration in the metric. He expects this to occur after prices move higher from the consolidation.
Corrections in a bull market are opportunities and not threats.
Good luck. It’s going to be quite the year…
— Raoul Pal (@RaoulGMI) April 25, 2021
Earlier in April, Bitcoin fell below $50,000. ForkLog found out experts’ views on the likely evolution of the situation.
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