Raoul Pal, macro guru and former Goldman Sachs executive, Ethereum He thinks (ETH) and the rest of the cryptocurrency market may face a sharp price swing in the coming days.
Referring to the ‘DeMark’ technical indicator, which tries to determine the direction of the price by comparing the last recorded maximum and minimum prices with the price of the previous period, Raoul Pal stated that some of the crypto assets are starting to signal a ‘reversal’.
Koinfinans.com As we reported, Pal firstly measures the value of the dollar against fiat currencies. US dollar indexwhat (DXY) focuses. According to Pal, DXY looks set for a trend reversal this week after recording a DeMark nine level that signals a sell pattern in the uptrend.
“For market timing DeMark technical indicatorI particularly like using the weekly DeMark and the monthly DeMark as they fit my time horizon and tend to identify larger moves/reversals.
Over the next three weeks, some VERY important signals began to emerge. The first is DXY – the ninth weekly comeback this week.”
weakness in the index, Ethereum and traders prefer to follow DXY closely, as it tends to turn into strength for risky assets like cryptocurrencies.
With DXY showing signs of a potential trend change, Pal says the bond market is poised to signal multiple reversals.
A DeMark 13 issue is often associated with more pronounced market reactions.
Examining Ethereum, Pal highlighted that the leading smart contract platform is also on the verge of signaling a DeMark reversal.
According to Pal, DeMark signals across multiple asset classes suggest that a meaningful drop is coming to him this month. However, he also confirmed the views of different analysts, warning that this week’s CPI level could trigger a sell-off before risky assets like crypto make returns.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.