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Bitcoin sign in a window in Toronto.

Thomson Reuters

Bitcoin had a blistering first half of 2017. It rallied from
about $1,000 a coin to a record high near $3,000 before
finishing June near $2,500. It booked a first-half gain of about
168%.

The historic run for the cryptocurrency has prompted observers in
both the tech world and on Wall Street to talk about the
cryptocurrency being in a “bubble.”

Last week, Jeffrey Kleintop, the chief global
investment strategist at Charles Schwab,
 suggested

bitcoin’s bubble was unlike anything we have ever seen
before
. Kleintop’s warning came just a few weeks after tech
billionaire
Mark Cuban tweeted
, “I think it’s in a bubble. I just
don’t know when or how much it corrects. When everyone is
bragging about how easy they are making $=bubble.”

But Goldman Sachs thinks bitcoin still has more room to run. In a
note to clients sent out on Sunday, Sheba Jafari, head of
technical strategy at Goldman Sachs, suggested that while
bitcoin’s correction hasn’t run its course, it’s ultimately
heading higher.

Jafari wrote bitcoin is “still in a corrective 4th wave” that
“shouldn’t go much further than 1,857.”

However, bitcoin enthusiasts shouldn’t worry too much. From
there, Jafari sees the fifth wave of the move taking the
cryptocurrency to a new record high.

“From current levels, this has a minimum target that goes out to
3,212 (if equal to the length of wave I),” Jafari wrote. “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.”


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