According to the analyst, Bitcoin will rebound from support around $11,094, leaving room for at least one leg higher towards $12,916 and $13,971. This could complete a V wave count from July, producing a short-term top or consolidation.
In a note to customers, Goldman Sachs gave a bullish forecast for Bitcoin price. Shared on Twitter on Aug. 11, the note suggests a short-term target of $13,971.
The target given is based on Elliott Wave Theory, which forecasts market trends by identifying extremes in investor psychology, along with price highs and lows.
Bullish analysis based on Elliott Waves
The bigger picture and longer-term forecast
Potentially, the analyst suggests, this could be the first leg of a five wave count. This would mean that any retracement from $12,916-$13,971 levels presents a buying opportunity, as after the consolidation period, price could once again resume higher unless it goes below the previous recent low of $9,084.
The note suggests a short-term stop at $10,791.
Goldman Sachs increasingly interested in Bitcoin and cryptocurrency
Goldman Sachs has taken an increasing interest in the cryptocurrency market. As Cointelegraph reported, in the last month it has gone from looking at the potential of launching its own virtual token, to making hires to accelerate the program.
Goldman Sachs Analysts’ Note Says Now’s a Good Time to Buy Bitcoin
Investment bank Goldman Sachs has recommended that investors should capitalize on the current price dip and buy bitcoin.
In an analyst’s note, part of which was tweeted Monday by Su Zhu, CEO at Three Arrows Capital, the bank said that its short-term target for bitcoin (BTC) is $13,971 and that investors should consider buying on any dips in the current scenario.
The bank said that, based on its Elliott Wave analysis, BTC would find support around $11,094, and that there’s scope for a move higher to $12,916, then $13,971.
“Any such retracement from $12,916-$13,971 should be viewed as an opportunity to buy on weakness as long as it doesn’t retrace further than the $9,084 low”, the note said.
It should be noted that the prices used for the analysis don’t include weekend prices and are likely from futures market data.
While the bank’s analysts are bullish on bitcoin, Goldman Sachs’ CEO and chairman has previously said bitcoin just isn’t his thing. Lloyd Blankfein said in an interview last June that bitcoin is “not for me … I don’t do it. I don’t own bitcoin.”
Rumors that Goldman would launch a crypto trading desk and custody service have been reportedly put on hold over the uncertain regulatory scene in the U.S.