Goldman Sachs Gets Bullish On Bitcoin With A Price Target Of $13,971 (#GotBitcoin?)
In a note to customers, Goldman Sachs gave a bullish forecast for Bitcoin price. Shared on Twitter, Aug. 11, the note suggests a short-term target of $13,971. Goldman Sachs Gets Bullish On Bitcoin With A Price Target Of $13,971 (#GotBitcoin?)
Bullish Analysis Based On Elliott Waves
The target given is based on Elliott Wave Theory, which forecasts market trends by identifying extremes in investor psychology, along with price highs and lows.
According to the analyst, Bitcoin will rebound from support around $11,094, leaving room for at least one leg higher towards $12,916 and $13,971. This could complete a V wave count from July, producing a short-term top or consolidation.
The Bigger Picture, And Longer-Term Forecast
Potentially, the analyst suggests, this could be the first leg of a five wave count. This would mean that any retracement from $12,916-$13,971 levels presents a buying opportunity, as after the consolidation period, price could once again resume higher unless it goes below the previous recent low of $9,084.
The Note Suggests A Short-Term Stop At $10,791.00
Goldman Sachs increasingly interested in Bitcoin and cryptocurrency
Goldman Sachs has taken an increasing interest in the cryptocurrency market.
As Cointelegraph reported, in the last month it has gone from “looking at [the] potential” of launching its own virtual token, to making hires to accelerate the program.
Short The Dollar: How Goldman’s Bearish Stance Uplifts Bitcoin Q4 Sentiment
Analysts at Goldman Sachs are bearish on the U.S. dollar in the near term.
Goldman Sachs, the $71.4 billion investment bank, is reportedly bearish on the U.S. dollar. For Bitcoin (BTC), which has recently rallied above the dreaded $11,100 level, this could serve as a potential catalyst.
Bitcoin is heading into the last two months of the year with significant uncertainty. But if the dollar continues to slump, it could buoy the momentum of BTC and gold in the fourth quarter.
Why Goldman Sachs Is Not Optimistic On The Dollar
Zach Pandl, the co-head of Global FX, Rates, and EM Strategy at Goldman, predicts the dollar to hit 2018 lows.
In a note to clients obtained by CNBC, Pandl and his team of analysts pinpointed two major factors. First, Pandl said the potential “blue wave” election remains a significant risk to the U.S. Dollar Index (DXY). Second, the prospect around COVID-19 vaccines remains unclear.
On Sept. 30, Moderna CEO Stéphane Bancel told the FT that the vaccine would not likely be ready until after the election.
The lack of clarity on the production and distribution of vaccines, as well as the election risk, could hinder the dollar’s momentum. Pandl wrote:
“In our view, a ‘blue wave’ U.S. election and favorable news on the vaccine timeline could return the trade-weighted Dollar and DXY index to their 2018 lows.”
If the dollar drops, it would naturally benefit alternative stores of value like Bitcoin and gold. Since alternative assets are priced against the dollar, the decline of the DXY causes other stores of value to rise.
Atop the declining dollar, Pandl additionally noted that potential vaccine breakthroughs could boost risky assets. As such, if institutions view Bitcoin as a risk-on asset, it could further boost the sentiment around BTC. Pandl wrote:
“To be sure, there are important risks: we are most uncertain about the length of the vote count (especially for the Senate) and the equity market reaction to a ‘blue wave’. But the wide margin in current polls reduces the risk of a delayed election result, and the prospect for near-term vaccine breakthroughs may provide a backstop for risky assets.”
Bitcoin Technical Structure Remains Optimistic
A persistent narrative around the medium-term performance of Bitcoin has been its high time frame structure.
The weekly and monthly charts of Bitcoin remain highly positive due to BTC’s reaction from the $10,500 to $10,700 support range.
On Oct. 12, Bitcoin surged above $11,500 for the first time since September, demonstrating strong momentum.
The recovery of BTC above the $11,300 resistance level is critical because it follows a series of negative events in October.
From charges against BitMEX to U.S. President Donald Trump’s pushback on the stimulus, BTC faced numerous occurrences that could have led to a sharp pullback.
Following a prolonged period of stagnance throughout September, the recent price action of Bitcoin remains positive.
Goldman Sachs Says Bitcoin Is On The Path To Maturity
Analyst Jeff Currie believes more institutional money is needed to stabilize the market.
In an interview with CNBC, Currie said Bitcoin’s remarkable run has attracted greater institutional interest, but noted that smart-money investors are still a tiny fraction of the overall market. They will need to come in droves for Bitcoin to become a stable asset and avoid a flash crash like we saw earlier this week, he said.
“I think the market is beginning to become more mature,” Currie said of Bitcoin, adding that “volatility and those risks that are associated with it” are common for nascent assets.
“The key to creating some type of stability in the market is to see an increase in the participation of institutional investors and right now they’re small […] roughly 1% of it is institutional money.”
Some of Wall Street’s biggest names have thrown their weight behind Bitcoin over the past year. Legendary investors Paul Tudor Jones and Stanley Druckenmiller have already invested in the digital asset, and firms like MassMutual and Ruffer Investment Company have acquired sizable positions in BTC.
Last month, Anthony Scaramucci’s hedge fund, SkyBridge Capital, submitted an application with the Securities and Exchange Commission to launch a new Bitcoin fund.
That’s on top of the tens of billions invested by MicroStrategy, Grayscale, PayPal and Square combined.
Goldman Sachs has even changed its tune on Bitcoin and cryptocurrencies more generally. The firm has not only beefed up its human resources to include digital currency experts, but it has also issued guidance on the peaceful coexistence of Bitcoin and gold as macro hedges.
Coinbase, one of the world’s largest crypto exchanges, has also reportedly tapped Goldman for its forthcoming IPO.
After more than a decade of extreme price volatility, Bitcoin (BTC) is finally starting to mature as an asset class, according to Jeffrey R. Currie, Goldman Sachs’ global head of commodities research.
Bitcoin’s 2021 Returns Destroy Everything On Wall Street, Goldman Sachs Says
Bitcoin’s lead over assets from stocks to bonds, oil, banks, gold and tech stocks and the euro has widened.
Goldman Sachs, the storied Wall Street firm, didn’t start including bitcoin in its weekly ranking of global asset-class returns until late January, when the largest cryptocurrency quietly appeared atop the chart.
But since then, bitcoin’s lead over assets from stocks to bonds, oil, banks, gold and tech stocks and the euro has widened.
As of March 4, bitcoin’s year-to-date return, at about 70%, was roughly double that for the next-closest competitor, the energy sector, at about 35%, according to Goldman Sachs’ latest “U.S. Weekly Kickstart” report.
The comparisons could become even more flattering to bitcoin now that a recent bout of selling in U.S. stocks has taken the Standard & Poor’s 500 Index’s year-to-date return to roughly zero – flat on the year.
* The recovery in oil prices and real yields has boosted year-to-date returns for cyclical sectors such as energy and financials, which are nevertheless underperforming bitcoin.
* Crude oil and energy have a higher risk-adjusted return (Sharpe ratio) than bitcoin so far this year.
* Gold is the worst-performing asset class year-to-date, as rising yields have punished traditionally defensive sectors such as consumer staples and utilities.
* Based on prior CoinDesk reporting, bitcoin is viewed by many investors both in crypto and traditional markets as a potential inflation hedge, especially in an era where central banks around the world are pumping trillions of dollars of freshly created money into financial markets to stimulate coronavirus-racked economies. Even so, gold has lost about 10% on the year, prompting some market observers to argue that bitcoin is stealing market share from the yellow metal.
* According to a survey, some 40% of Goldman clients have exposure to cryptocurrencies.
* That’s the case even though, as recently as May 2020, Goldman’s money-management division argued in a presentation that cryptocurrencies were “not a suitable investments for our clients,” merely a beneficiary of a “mania” worse than the infamous run on Dutch tulips in the 1600s.
Goldman Sachs Gets Bullish,Goldman Sachs Gets Bullish,Goldman Sachs Gets Bullish,Goldman Sachs Gets Bullish,Goldman Sachs Gets Bullish,Goldman Sachs Gets Bullish,Goldman Sachs Gets Bullish,Goldman Sachs Gets Bullish,