Benzinga | Oct 3, 2021 12:44PM EDT

This Investment Strategist Says Bitcoin Forming Pattern That Usually Leads To Very Powerful Upside Move: Here's Why

Former Goldman Sachs Group Inc (NYSE:GS) hedge fund executive Raoul Pal says Bitcoin (CRYPTO: BTC) is forming a pattern that could foreshadow a massive rally.

Pal, who is currently the CEO of the on-demand financial TV channel Real Vision, said that Bitcoin could blast out of its range sometime between now and early next year.

In a recent tweet, he said that Bitcoin's long-term log chart looks pretty luscious.

"Who knows if the wedge breaks on the first attempt, but a consolidation pattern of this magnitude usually leads to a very, very powerful upside move," he said in the tweet.

According to Pal, Bitcoin is forming a huge descending wedge reminiscent of a pattern that formed from 2017 to 2020.

When BTC broke out of the technical formation, it ascended to its all-time high above $64,000.

Ethereum (CRYPTO: ETH) and BTC may break out of their resistance at the top of the wedge and ignite a 100% rally from current levels. He added that the coming months should be "ridiculous" for the crypto markets, including sizeable rallies in ETH/BTC.

Last month Pal announced that he might end up selling all his Bitcoin holdings as ETH occupies the largest chunk in his portfolio.

Pal gave a price target of $250,000 to $400,000 for BTC by March 2022, based on the prospects of an exchange-traded fund and central bank money printing -- irrespective of whether that occurs or remains talk only.

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