While some investors and regulators only see the bear market as a risk to the financial system, Raoul Pal sees opportunities. The Real Vision CEO and macroeconomics guru advises Crypto investors to leverage on the bear market and increase their digital asset wealth. However, Pal advises prospective investors to trade Crypto with tact using appropriate instruments and trading tools.
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Tools of Trade Can Help Investors to Maximize Their Leverage
According to Pal, the five-year Exponential Moving Average for Bitcoin (BTC) shows that Crypto is headed for a trough. However, he adds the moving average time series analysis projects that the Crypto will establish a new support level at $21,984.67 before recovering.
Pal is cautioning investors from using this technical analysis technique in isolation. He adds that the market is dynamic, and many contributing factors may impact trends in the Crypto market, such as margin calls.
Margin Calls Will Accelerate the Bears
Margin calls put pressure on Crypto markets downwards. Investors seek to liquidate their digital assets and hedge their wealth against losses. Therefore, Pal adds that the increased selloffs will distort the technical analysis, which may increase the margins of errors for the technical indicator tools.
The financial markets guru, however, adds that margin calls are not only prevalent in the Crypto markets but also across the financial markets.
The Global Economic Meltdown is Projected to Last Between 12 and 18 Months
The trigger for the Crypto and financial markets bears is the global economic crisis that is seemingly deteriorating. Global markets are characterized by inflation and supply chain problems, and there is no solution. Pal believes that the situation will remain prevalent in the next 12 to 18 months, and markets are expected to take a hit.
On the other hand, Hugh Hendry Eclectica, the founder of Founder Eclectica Macro Hedge Fund, is less optimistic. Eclectica sees a reenactment of the 2008 crisis that will take the market to new.
Nonetheless, investors are likely to adjust to the new reality, and the margin calls are likely to reduce and balance market transactions. However, the Crypto winter is unlikely to be reversed, and recovery might be depressed in the short and medium term.
Amid the turmoil, Pal advises crypto enthusiasts to unlock opportunities for their long-term portfolios. The expert is waiting to start amassing digital assets next week and will continue doing so into July. He adds that the Relative Strength Index (RSI), deviation log regression model, and the DeMark weekly charts show that it’s time to buy.