In a note to customers, Goldman Sachs gave a bullish forecast for Bitcoin price. Shared on Twitter on Aug. 11, the note suggests a short-term target of $13,971.
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.
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.