New analysis from Goldman Sachs suggests traders should buy the Bitcoin dip.
The intel, presented in a company slide deck, shows that Goldman is using the Elliot Wave theory to chart BTC’s path. The method is designed to predict future price action by identifying crowd psychology that manifests in waves.
“[Bitcoin] has tested/held the target for wave iii of v from July at $11,880. A pullback from there should find support near/around $11,094. As long as it avoids contact with the top of wave i at $10,791, there’s still room for at least one more leg higher towards $12,916 and $13,971. Reaching these levels could mean completing a v wave count from July. Bottom line, watch for signs of a short term top/consolidation once satisfied.
That being said, in the bigger scheme of things, this might still be the first leg of another 5-wave count similar to the trend that lasted from December 2018 through June 2019. Said another way, any such retracement from $12,916 – $13,971 should be viewed as an opportunity to buy on weakness as long as it doesn’t retrace further than the $9,084 low.”
Goldman Sachs chairman and CEO Lloyd Blankfein isn’t the biggest fan of Bitcoin, and told Bloomberg late last year that BTC is “not for me” and “I don’t do it. I don’t own Bitcoin.”
Meanwhile, Goldman has been working on a Bitcoin trading desk for more than a year, although there is no launch date for the platform. You can check out the full Goldman Sachs slide deck on Bitcoin below, which was uploaded by CoinDesk.