Global investment banking group, Goldman Sachs has advised its clients to brace up for the possibility that bitcoin was heading to near $4000 soon.
Sheba Jafari, head of technical strategy at Goldman Sachs made the prediction on Sunday, 2 July in a note sent to clients. According to her, the price of bitcoin may drop below $2,000 soon before surging to another all-time high.
“From current levels, this has a minimum target that goes out to 3,212 (if equal to the length of wave 1),” Jafari wrote. “There is potential to extend as far as 3,915 (if 1.618 times the length of wave 1). It just might take time to get there.
Should that prediction come through, some analysts say investors who time their movements correctly could reap up to 110 percent profits in the coming days.
Even though Bitcoin has been called a bubble, investors who have hungrily watched Bitcoin’s price soar 290% over the past year from the sidelines still have a chance to win big.
The latest bitcoin price index according to coindesk is $2,612.
JP Buntinx, an analyst with newsbtc.com, stated that “putting an exact time and date on the price is rather difficult, though. A drop in value is equally possible, although below $2,000 may not necessarily happen. Anything is possible in the world of cryptocurrency, though. Hoping for a sharp drops seems to be wishful thinking more than anything else.”
Analysts at Fortune predict that if Bitcoin were to hit $3,915, then that would add another $22 billion in market capitalization to cryptocurrency, which is up 53% from Bitcoin’s current market capitalization of $42 billion.
Uncertainty about the future of bitcoin itself has kept prices in check lately. Updates to the bitcoin network scheduled for release in the next several weeks could split the digital currency in two if developers don’t agree on how to make the updates compatible with each other.
Goldman’s latest prediction shows how closely investors at watching the cryptocurrency.
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