Raoul Pal wants Bitcoin (BTC) investors to mobilize their operations against Elon Musk. The macroinvestment strategist advised traders to accumulate or preserve their Bitcoin holdings just as the flagship digital currency suffered massive falls over the weekend and earlier this week.
Bitcoin is down 16.92% over the weekend and Monday. Source: Tradingview
In retrospect, bulls were under pressure after Elon Musk began shaking up the digital currency market. On May 12, the billionaire businessman reversed his Tesla company’s decision to accept Bitcoin payments for its electric vehicles, citing environmental issues related to the Bitcoin mining industry.
However, he noted that Tesla would still have more than $ 1 billion in Bitcoins on its balance sheet. The company had revealed this cryptocurrency investment in its securities presentation in February 2021.
But over the weekend, Musk hinted at another change of direction. He became involved with an alleged digital currency scammer on Twitter when the latter discussed the possibility of Tesla launching its entire $ 1.5 billion Bitcoin game on the market. Musk responded with a “de facto,” which led traders to believe he would in fact sell all of Tesla’s Bitcoin holdings.
Musk later clarified that Tesla has not sold its Bitcoin.
But the damage was done. As the price of Bitcoin fell, Musk’s comments led to a Twitter dispute with the Bitcoin community, which led to the prominent influential cryptographer Anthony “Pomp” Pompliano calling the CEO of Tesla an “emotional billionaire.”
We were anticipating national states and central banks, but instead we got an emotional billionaire with a Twitter account.
– Pomp (@APompliano) 16 May 2021
On the other hand, Pal suggested that Bitcoin traders ignore the “FUD weekend” and focus on the solid technical configuration of the digital currency indicating a bullish break.
“After weekend FUD festival and shit fights, we’re back to the important stuff. Most likely BTC is forming a wedge … perfectly normal and healthy correction […] Then, if it has dry powder, add it. If you don’t. HODL «.
Anatomy of Pal’s Bitcoin Tweet
BTFD is a backdrop to “Buy the F *** ing Dip,” which influences traders to accumulate more assets as prices fall. Meanwhile, Pal seemed very optimistic about the latest Bitcoin correction after detecting a downward wedge pattern.
Descending wedges are bullish reversal patterns. They appear when price trends fall within a range defined by two downward sloping trend lines, as the reaction maxima and reaction minima that form in them converge.
It usually leads to the price breaking above the trend line above the maximum wedge length. Technical theory serves as the basis for Pal’s bullish low on Bitcoin.
Bitcoin Wedge formation suggests a bullish break in the future. Source: Twitter
A reflected image of Tradingview’s Pal BTC trading setup shows that the BTC / USD exchange rate could rise by almost $ 14,000 in the next uptrend.
Meanwhile, fundamentals like network hash rate and other metrics remain bullish in the Bitcoin market. However, some macroeconomic factors may also provide a boost for Bitcoin, particularly as the dollar collapses.
In addition, the Federal Reserve will publish the minutes of the meeting in April on Wednesday, suggesting that the central bank will keep interest rates close to zero, buying government bonds and mortgage-backed securities at a rate of $ 120 billion per month, at least until 2023.
“We hope that the proceedings … reiterate that lawmakers consider the rise in inflation to be temporary,” said Kim Mundy, a foreign exchange strategist at the Commonwealth Bank of Australia in Sydney. Mundy also said:
“The result is that we don’t expect the (Fed) to consider reducing its asset purchases anytime soon. The dollar is expected to resume its downward trend this week following last week’s CPI-inspired boost.