Goldman Sachs Talks Bitcoin: Where Does Wall Street Think BTC is Going Next?
In 2017, Jamie Dimon slammed Bitcoin. The chief executive of JP Morgan claimed that if any of his firms traders were caught trading the cryptocurrency, they would be fired, as it is dangerous.
Other figures on Wall Street have echoed this sentiment. Legendary investor Warren Buffett has dubbed Bitcoin rat poison, adding that it doesnt have much more inherent value than a seashell or suit button.
Their main concerns seem to be that crypto assets dont produce cash flow, have a price-to-earnings ratio, are hard to understand, and potentially pose a threat to the fiat system.
But interestingly, it seems that not all firms on Wall Street have this overt anti-crypto policy and stance. In fact, Goldman Sachs, the famous investment bank, recently released their take on the Bitcoin chart.
Goldman Sachs Issues Bitcoin Target
If you were to peruse Crypto Twitter, you would find countless investors asking top analysts for a target. Just look to the endless stream of comments asking, Target sir?
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. pic.twitter.com/ocpq7hr0qv
According to the research note he managed to obtain, the New York-headquartered firm is currently eyeing a short-term target at $13,971 for BTC. Should the cryptocurrency encounter that level, that would mark a double top, as $14,000 is where Bitcoin reversed in late-June.
The unnamed Goldman Sachs analysts that wrote the note explained that per their use of Elliot Wave analysis, BTC is likely to bounce off $11,094 over the coming days, then it should have room for at least one more leg higher towards $12,916 and $13,971. In other words, the bank is currently leaning long on Bitcoin futures. Whether they are trading it or not is unclear.
Not only is Goldman Sachs bullish in the short term, but in the medium term too. Analysts at the institutions continued by stating that Bitcoins potential move to tap $13,971 may be the first leg of another five-wave count similar to the trend that lasted from December 2018 through June 2019.
And thus, they advised their clients to buy any retracement from their aforementioned short-term target, barring that BTC doesnt retrace further than the $9,084 low.
Goldmans surprise report comes a month after the firms DJ-CEO, David Solomon, told Les Echos that his firm is currently researching digital assets. Also, back in 2017 and 2018, there were rumors abound about the investment banks potential intention to launch crypto custody and a trading desk.
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