Bitcoin and gold may be gearing up for a substantial price surge as the global economic landscape improves.
Raoul Pal, the founder and CEO of Global Macro Investor, believes that the onset of “macro summer” could pave the way for a breakout in the price of Bitcoin (
BTC
) in the near future. Pal discussed this possibility in a X
thread
dated July 29.
Pal introduced the concept of the “Banana Zone,” a term he coined to signal a period of significant upward price movement. In this context, the term suggests that the price of Bitcoin could soar to a new all-time high.
To confirm this bullish trend, Pal and crypto trader Moataz Elsayed, also known as “Eljaboom,” are looking for Bitcoin to break out of its current cup and handle formation on the technical chart. Elsayed indicated in a post on July 28 that Bitcoin needs to surpass the $70,000 threshold to confirm the breakout.
Furthermore, the surge in Bitcoin’s open interest to an all-time high on July 29 indicates a growing interest in and liquidity for the leading cryptocurrency, potentially leading to a breakout.
Several catalysts are aligning to support the imminent price breakout of Bitcoin. Firstly, the Nasdaq is expected to undergo a healthy correction, as illustrated by Pal in a chart shared on his platform.
Secondly, with the approaching US elections, historical trends suggest that election years have been favorable for both the stock market and Bitcoin prices.
Lastly, a potential devaluation of the US dollar could serve as a catalyst for Bitcoin to reach new heights. Pal noted that during times of fiat currency devaluation, investors often turn to safe-haven assets like Bitcoin and gold to safeguard their purchasing power.
In conclusion, the stage is set for a potential surge in the prices of Bitcoin and gold, driven by improving macroeconomic conditions and a favorable market environment.