The founder and CEO of Global Macro Investor Raoul Pal asserted that he is super bullish on bitcoin after the virtual asset saw a key technical break as it tapped the $10k level. The move above $10k placed BTC in a “perfect wedge” structure which suggests that a bigger move is currently brewing.
Pal, who is also a former executive at Goldman Sachs approximates $1 million as a potential figure the bitcoin price can reach in the future.
Pal: A ‘Perfect Wedge’ Structure Suggests Bitcoin Could Potentially Touch $1 Million
On Thursday, the top cryptocurrency briefly shattered $10k for the first time since February as the crypto community prepares for the quadrennial halving that is approximately three days away at press time. The move also came shortly after reports that legendary macro investor Paul Tudor Jones was loading up on bitcoin to hedge against the “great monetary inflation”.
Raoul Pal shared some charts via Twitter which show that the probability that bitcoin will hit stratospheric prices has “risen dramatically” after forming a “perfect wedge”. Pal noted that if you rely on classic charting techniques, a $40,000 price tag is very possible.
But if you use a log chart, a $1 million price target is well within the realm of possibility. Alternatively, the perfect regression channel yields a “1 standard deviation move to $400,000 and a 2 standard potential to $1m (potential),” Pal added.
Pal further indicated that these price targets align with PlanB’s stock-to-flow model. The S2F model projects that bitcoin will get closer to the scarcity of gold after the halvening on May 12. The latest iteration of the model forecasts that BTC will go to $288,000 from 2020 till its fourth halving in 2024.
Best Set Up Ever: The Stars Are Aligning For The Next Mega Bullrun
According to Pal, bitcoin has one of the best setups he has ever seen in terms of technicals, fundamentals, fund inflows, and plumbing.
He observed that in the wake of the coronavirus crisis, central banks around the world are either experiencing the collapse of their fiat currency or have embarked on a money-printing orgy.
Like Paul Tudor Jones, Pal also believes that the unprecedented quantitative easing will have long-term detrimental effects on the global economy. But while other asset classes cave in to the tornado inflation that is coming from the huge amounts of money being poured into the economy, bitcoin is bound to win as it will be undergoing “quantitative tightening” instead.
Pal, summarized his Twitter thread by reminding bitcoin investors to brace for high volatility in both directions (either up or down). He then stresses that BTC is worth betting on in the long-term -even if there’s a chance he could be wrong. In other words, investing in bitcoin is a huge risk but the potential rewards that BTC investors could reap outweigh the accompanying risks.
BTC is trading at $9,917.53 at the time of publication. The flagship cryptocurrency has been on a tear the past few days ahead of the highly-anticipated halving event on Tuesday.