Popular Demand Spurs Goldman Sachs to Start Covering Bitcoin.
After numerous client requests, Goldman Sachs has reportedly started covering bitcoin. The firm released a report on Monday with a bearish outlook for the digital currency.
Recently hedge funds were reported by quietly investing in bitcoin. An article by Zero Hedge on Monday confirms that hedge funds are actively trading the digital currency. In addition, fund managers that are clients of Goldman Sachs have also petitioned the firm’s chief technician Sheba Jafari to start covering it.
Goldman Sachs subsequently released a client report called “GS Techs: Quick BTC” on Monday, according to the publication. “Due to popular demand, it’s worth taking a quick look at bitcoin here,” Jafari wrote.
The Goldman Sachs report explains how the bearish outlook came to mind through technical analysis, Zero Hedge detailed. The firm claims bitcoin’s extended target price for a 3rd of V-waves, using the ratio of 2.618, is $3,134, which was almost reached on Monday. “Both daily/weekly oscillators are diverging negatively. All of this to say that the balance of signals are looking broadly heavy,” the report reads.
After the the third wave, the firm then explained its view on what’s to come:
“An eventual 4th wave should retrace at least 23.6% of the length of wave III, which in this case comes to ~2,330. It shouldn’t go much further than 38.2% down at 1,915. Expect 4th waves to trade sideways/messy for a period of time before eventually continuing the underlying trend.”
Many people have recently offered their views on what they think the price of bitcoin will be. One of the most bullish in recent history is from Blockchain’s CEO Peter Smith, who is on the record for predicting:
“A bitcoin might reach $500,000 by 2025.”
Daniel Masters, the chairman of XBT Provider, early this month told CNBC that he expects bitcoin to reach $4,000 by the end of the year. “Bitcoin is emerging as the transactional layer of the internet, as programmable money and as digital gold. That’s the big picture,” he said.
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