Former Goldman Sachs Executive Predicts Stock Market Bottom
Former Goldman Sachs executive Raoul Pal believes that the stock market will soon reach a bottom after experiencing corrective movements for three consecutive weeks. Pal suggests that the S&P 500 (SPX) will enter oversold territory this week, prompting institutional buyers to step in and buy the dip. He believes that this will establish a market bottom, as retail money has been invested in the market while big banks have not. The correction in equities presents an opportunity for banks to cover their shorts and go long, potentially providing a floor for the market.
Bitcoin and Ethereum Showing Signs of Reversal
Pal also analyzes the price movements of Bitcoin (BTC) and Ethereum (ETH). He notes that Bitcoin has reached key support levels and triggered a new DeMark daily 9 setup, which has historically signaled a reversal in price. With a current RSI of 20, Bitcoin is the most oversold it has been since June of last year. Similarly, Ethereum is showing bullishness on the RSI indicator and has potentially formed a large bull flag pattern. Pal suggests that both cryptocurrencies may see a bullish reversal in the near future.
About the Indicators
The RSI is a widely-used momentum indicator that determines if an asset is overbought or oversold. The DeMark sequential indicator identifies potential turning points in the market, with a value of nine indicating a possible trend reversal.
Market Prices
At the time of writing, Bitcoin is trading at $26,125, down 0.3% in the last 24 hours. Ethereum is trading at $1,674, up 0.1% in the last 24 hours.
Stay Updated
To receive email alerts and stay updated on the latest news, subscribe to The Daily Hodl’s mailing list. You can also check price action and follow The Daily Hodl on social media platforms such as Twitter, Facebook, and Telegram. Don’t miss out on The Daily Hodl Mix, a curated selection of news and articles.
Disclaimer
Please note that the opinions expressed in this article are not investment advice. It is important to conduct thorough research before making high-risk investments in Bitcoin, cryptocurrency, or digital assets. All transfers and trades are done at your own risk, and any losses incurred are your responsibility. The Daily Hodl does not recommend buying or selling any cryptocurrencies or digital assets, and is not an investment advisor. Please be aware that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney