Wall Street has generally been very skeptical of Bitcoin with
a number of industry leaders lambasting it in recent years. In what may be the
beginning of a change of tack, Goldman Sachs has posted a bullish target for
BTC and has even urged investors to buy it.
Bitcoin Goldman Target at $14k
In a note to investors, Goldman Sachs has recommended a buy
on Bitcoin with a bullish target close to $14k. The investment bank has not adopted
the scathing stance shared by others in the industry such as JP Morgan’s Jamie
Dimon or billionaire investor Warren Buffett.
Goldman has set a short term target of $13,971 which, if
reached, would be a new high for 2019.
“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 below $9,084 low.”
So with a support floor of $9k, there is an expectation
for a move higher. Reasoning for this was discussed in a tweet from Three
Arrows Capital CEO Su Zhu.
“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.”
The analysis is based on the BTC futures chart which does not include weekend trading when markets are closed. Nevertheless, the patterns are virtually identical to the BTC/USD chart so the Elliot Wave theory stands following the weekend’s dip.
The Goldman prediction has been met with a big dose of disparagement
on crypto twitter where trust of big banks is thin on the ground.
In a possibly related development, Dow Jones Industrial
Average (DJIA) futures have plunged in early trading on Monday morning as the
growth forecasts and warned about a conceivable recession.
Long Term Indicators Bullish For BTC
Bitcoin just closed its highest weekly candle in 2019 which
is also bullish
on the longer term time frames. Topping $11,500, the weekly candle just beat
the one in early July and is the highest close since early 2018.
A week of consolidation led to losses over the weekend but
BTC is still range bound and will remain so all the time it stays in five
figures. The golden cross on the four hour chart last week is holding though
the opposite has just occurred on the one hour chart indicating a strengthening
down trend in this time frame.
At the time of writing Bitcoin was still consolidating in
the $11,400 range.