Crypto: Raoul Pal predicts the rise of the S&P 500

Raoul Pal, former executive and macro expert at Goldman Sachs gives his medium-term forecast on cryptocurrencies. He thinks the S&P 500 and crypto should rebound soon. This, after experiencing significant corrections over the next few weeks.

S&P 500: the low is near

Pal said in a recent blog post that the S&P 500 is expected to enter the oversold zone. According to him, this scenario should occur this week or next week. As such, he expects institutional buyers to step in to buy lower, creating a floor for the market.

In his article, Pal recalls that professional investors (ie the big banks) have not participated in the current movement. In reality, it was money from individual investors that flooded the index throughout the year. Therefore, large investors are likely to take advantage of falling stock markets to buy lows.

Bitcoin (BTC) and Ethereum (ETH): the indicators are optimistic

In addition to the S&P 500 Pal also gave its notice on other cryptos, in particular bitcoin (BTC) and Ethereum (ETH). He said technical indicators suggest that these two assets are on the verge of rebounding.

According to the analyst, the price of BTC fell during the week. It would also have reached the crucial support level near $25,200 once again. Pal also points out that DeMark has started a new pattern DeMark Daily 9 Today. Indeed, DeMark is a technical indicator that aims to identify turning points in the market. A score of 9 indicates that the market is about to reverse the trend.

Separately, Pal went on to say that the RSI value of bitcoin (BTC) is currently at 20. This represents the most oversold state since June last year. Now, the RSI is a popular momentum indicator that seeks to identify the overbought or oversold state of an asset.

In conclusion, Pal’s forecast is optimistic for financial markets. If he is right, investors could soon buy the S&P 500 and cryptos at bargain prices.