Goldman Sachs: Bitcoin Will Plunge Again Before Surging To $4,000

The first half of 2017 proved to be historic for bitcoin (along with most other major cryptocurrencies), with BTC rallying a staggering 168% from the start of the year.

Bitcoin started 2017 at around $1,000, before surging all the way to $3,000 and settling around $2,500 at the end of June. The road was far from smooth, however, with rising volatility accompanying the big bullish move.

Many analysts on Wall Street have struggled to comprehend bitcoin’s precipitous rise. It’s very rare that a new asset class emerges, and it typically takes years for new markets to mature.

Hence, we’re seeing a wide array of opinions from traditional analysts on where bitcoin is headed next. Many — including Charles Schwab and Mark Cuban — have called it a “bubble” on the verge of collapse.

But despite the negative calls, bitcoin continues to outperform stocks, bonds, precious metals, and pretty much everything else.

Over the weekend, Goldman Sachs chimed in on the cryptocurrency’s prospects, with what’s best described as a mixed outlook. Analyst Sheba Jafari, head of technical strategy at Goldman, sent a note to clients stating that a continued pullback is likely in the near term, but will ultimately lead to new highs.

Jafari notes that bitcoin is “still in a corrective 4th wave,” which “shouldn’t go much further than 1,857.” That implies an additional drop of around 25% from its current levels around $2,500.

That’s where the negative news ends, however. “From current levels, this has a minimum target that goes out to 3,212 (if equal to the length of wave I),” Jafari says. “There’s potential to extend as far as 3,915 (if 1.618 times the length of wave I). It just might take time to get there.”

So fear not, bitcoin bulls. You have at least one ally on Wall Street that anticipates the rally is far from over.

https://etfdailynews.com/2017/07/03/goldman-sachs-bitcoin-will-plunge-again-before-surging-to-4000/