A lot of positive words are coming about crypto nowadays from people associated with Goldman Sachs. 10 days ago an ex-Goldman executive had said that Bitcoin market cap can touch 8 trillion dollars in the long term, and now a positive forecast about its price has been done by an analyst currently working at Goldman Sachs. According to an August 11 note sent by this analyst to company’s customers, Bitcoin may reach a target of $13,971 in the short-term. You can see the note below:
What is more surprising: that Goldman Sachs has a bullish target on $BTC, that they have any target at all, or that they use Elliott Wave Theory?
I'm personally most surprised they cant be bothered to use a chart that includes weekend price action. pic.twitter.com/ocpq7hr0qv
— Su Zhu 🦁 (@zhusu) August 12, 2019
The bullish analysis of Goldman Sachs is based on Elliott Wave theory, which predicts the short term swings in market with help of human psychology. The analysis says that though Bitcoin may currently be struggling to break the resistance at $11,600, it will rebound from the support at $11,094 and then may move towards $12,916 or even $13,971. This will complete a V-wave count from July after building a short-term top.
More interestingly, the same analysis also reveals that this may only be the first leg of five wave counts that are waiting ahead. What this means is that any retracement from 12,916 – 13,971 levels may present a buying opportunity, because subsequently Bitcoin is only going to rebound. And if that is the case, $20k mark isn’t looking too far for Bitcoin now. Unless BTC goes below $9,084 support level, there’s very less chance of it not completing the five wave counts included in the analysis of Goldman. But still, these are crypto markets – nothing can be said with certainty. And that’s why the analysis of Goldman also suggests a stop loss at $10,791.
It’s also worth noting that the current supply of Tether is also pointing towards more surge in the price of Bitcoin. A separate study on the correlation between Tether’s market supply and Bitcoin price also suggested that the supply is well in-line to make Bitcoin reach the $20k mark. In short, solid possibilities are forming silently to take BTC up to 20k this time. Now it will be interesting to see how long this feat takes to accomplish.