Former Goldman Sachs executive and analyst Raul Pal said in his 14th report that Bitcoin and Ethereum would soon enter a bull market for a variety of reasons. Raul Pal’s prognosis of a bullish turn was based mostly on the fact that both currencies were holding support.
Indeed, for the last three weeks, Bitcoin and Ethereum have held support levels of $16,000 and $1,200, respectively.
According to Raul Pal, the greatest negative news for the cryptocurrency market was the height of oversold circumstances, when many investors sold their coins and exited the market.
Raul Pal’s reasoning is based on ‘Metcalf’s Law,’ which calculates network value based on the number of users. In other words, individuals who leave the market have already departed, while long-term investors are willing to purchase at the bottom.
Another foundation is the investor psychological index.
“Investors’ fear index has gone beyond ‘severe dread’ and into the stage of ‘boredom,'” said Raul Pal. “This stage is a period when variables that produce enormous dangers in the market, such as leverage, are considerably decreased and new investors grow.” .
He projected that the US Federal Reserve’s relaxation of austerity would herald the beginning of a bull market for the two coins.