Goldman Sachs: Bitcoin Price To Reach Nearly $4,000

Investment banking giant Goldman Sachs has today provided yet another vote of confidence in bitcoin, following the findings of its latest client note analysis.

According to their findings, bitcoin could reach as high as $3,900 in the near future, as part of what Goldman describes as a ‘fifth wave’ of bitcoin growth.

At the time of writing, this represents a further 50 percent increase in the underlying value of bitcoin, now trading at a little over $2,605.00.

According to analyst Sheba Jafari, who published the note, it is possible that bitcoin could consolidate for a while longer, as markets continue to find new price stability.

Noting the outlying potential of a low of $1,857, the note suggested prices will eventually rise to beyond $3,212, before heading through an additional growth phase toward the $3,900 mark.

With bitcoin pricing said to be moving within the realms of its fourth wave, that’s a factor Jafari has noted tends to lead to more unpredictable pricing, as is currently being experienced by bitcoin investors.

According to Jafari, signals from previous technical analysis suggest this could run for an extended period of time, before seeing accelerating price growth.

“This means that it could remain sideways/overlapping for a little while longer. At this point, it’s important to look for either an ABC pattern or a more triangular ABCDE. The former would target somewhere close to 1,856, providing a much cleaner setup from which to consider getting back into the uptrend. The latter would hold within a 2,076/3,000 range for an extended period of time.

“Either way, eventually expecting one more leg higher; a 5th wave. From current levels, bitcoin has a minimum target that goes out to 3,212 (if equal to the length of wave I. 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.”

The news will be welcomed by bitcoin investors, who have experienced at least two weeks of more volatile sideways pricing. Following rallies that took bitcoin to all-time highs of over $3,000, the currency suffered significant losses as concerns over some technical issues began to weigh on previously buoyant markets.