Few could describe Goldman Sachs as big fans of bitcoin. According to the latest analysis from the investment bank, though, now could be an excellent opportunity for speculators to get behind the world’s largest cryptocurrency.
Bitcoin bulls have had little to celebrate in recent days. At the time of writing, the cryptocurrency has fallen back to $10,844.
However, according to analysis of technical data, the markets are actually showing this to be the calm before another forthcoming bitcoin rally. One that some analysts believe could take prices beyond the previous highs of late 2017.
In the latest analysis published by Goldman Sachs, the firm has set a BTC price target of $13,971. It has done so while suggesting that any dips for the time being represent an effective opportunity for investors to buy more BTC.
According to the bank, support kicks in at around $11,094. It then has the potential to move to $12,916 then onwards to $13,971 over a short-term view.
Most analysts agree that the picture over the coming few months could be even rosier still. A breach of the highs of near-$20,000 are held by some to be a distinct possibility.
According to slides published by the bank, the lower limit of $9,084 is the threshold. Dips below apparently represent an attractive opportunity for investors.
“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.”
The news will come as a relief to those already long on bitcoin. Many of whom may have viewed recent pullbacks with concern. However, according to the research, the short-to-medium term picture continues to look attractive for BTC. It will remain so, too, for as long as trading stays above the $9,048 charted low.
Not known for their optimism on cryptocurrency, Goldman Sachs has repeatedly stalled its interest in launching its own crypto trading desk. the company has cited ongoing uncertainty over crypto regulation in the US.
Nevertheless, the technical analysis is there for all to see. With Goldman advising clients to act on short-term declines such as this, many investors will read this as a promising sign of the wider trends in the underlying market for BTC.