The Guru of Macroeconomics Foresees the Onset of Altseason
Former Goldman Sachs executive Raoul Pal foresees an imminent shift of capital flows into the altcoin market. This prediction stems from his comprehensive analysis of the TOTAL3 growth trend.
Pal shared his insights with his one-million-strong Twitter audience, presenting a chart that tracks the cumulative market capitalization of all digital assets, excluding BTC and ETH. Pal elaborated on why he believes the altcoin season is just around the corner.
Raoul Pal highlights a key indicator in his analysis: the composite TOTAL3 is currently trading near the apex of a falling wedge structure. This pattern, commonly recognized as a classic reversal pattern in technical analysis, signifies a potential shift from a downward trend. Pal firmly believes that a breakout could result in the total market capitalization of altcoins surpassing $4 trillion. Therefore, he suggests considering a long position when the upper side of the "wedge" is breached.
TOTAL 3 as of July 1. Source: Twitter
Seduced by the allure and potential of the chart, Pal has declared it one of the most promising and flawless patterns he's ever come across. Moreover, the economist posits that should the anticipated break occur (of which he is certain), it could ignite explosive price growth, with some assets seeing a rise of more than 1000%.
According to his projection, the crypto community should be bracing for a surge in the market capitalization of altcoins from the present $332.6 billion to over $4 trillion, a figure that currently seems utterly inconceivable.
In his earlier remark, Pal confidently stated that cryptocurrency would outperform other asset classes due to the rising global liquidity. He especially highlighted the potential impact of BlackRock's application for a spot Bitcoin ETF, which could infuse new capital into the crypto realm.
Whether to trust the words of a former Goldman Sachs Executive Director is a personal decision that each individual must make for themselves. However, we’d like to remind our readers that a key sign of the altseason onset is the BTC dominance index.
As of the time of writing, data from Tradingview indicates that the BTC dominance index stands at 51.1%. This suggests that the index is approaching its peak of 53%, indicating a potential shift from the accumulation phase to the redistribution phase that may be imminent.
