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 bank cut 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.