The selling pressure on Bitcoin (BTC) may already be easing up after its price recovered above the $94,000 mark.
The selling pressure on Bitcoin BTC $94 962 24h volatility: 1.7% Market cap: $1.88 T Vol. 24h: $62.06 B may already be easing up after its prices recovered above the $94,000 mark. This recovery followed a short stint at levels around $91,300 earlier today.
According to Wall Street veteran investor Raoul Pal, more recovery should be expected from BTC from here onwards, even as the Global M2 money supply continues to expand.
Presently, there are concerns as to whether Bitcoin price will follow the same pattern as it did in 2016 when it followed the expansion of the Global M2 money supply.
However, considering that the Global M2 money supply has been falling for the last two years, investors are worried about the possibility of Bitcoin repeating the feat. For many, Bitcoin may not have enough liquidity to sustain the price rally.
Despite these views, though, Raoul Pal thinks differently. The Global Macro Investor founder maintains that investors have no reason to be worried about the recent market movements.
Pal says the global money charts are exactly as they were in 2016/17, hinting that a strong expansion looks well underway.
Meanwhile, investors do not exactly dispute that the global money supply is well set up for expansion. After all, it shrunk significantly over the last two years. Their major concern, however, is that Bitcoin price did not retrace as much within the period to hint at a notable trend reversal.
For years, BTC prices have followed closely behind the M2 supply pattern. So, if this is anything to go by, many market experts believe that BTC may have to drop to $70,000 before reversing for a strong recovery.
While the fears in the market may appear genuine, Pal sees no reason to fret. The veteran says that Bitcoin price is showing an exactly similar move to that of 2016. He even shared the charts for comparison and said in a statement:
“It’s all going to be just fine. Maybe a bit lower or maybe it’s done already. Either way, higher over time. Don’t expect an exact repeat but a rhyme. Valhalla waits. Don’t Fuck This Up”.
At the moment, it appears that traders are not exactly confident in the market. Hence, the decline in the Bitcoin open interest, which means traders may have been closing their positions. Glassnode confirmed that “the mid-term trendline (30-day SMA) peaked and is now slightly declining, while the short-term trendline (7-day SMA) has fallen below it”.
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Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.
