The bitcoin price is at a prime buying opportunity, according to analysts at Goldman Sachs Securities Division.
In a note to investors, Goldman Sachs outlined a strong bullish case for the long-term bitcoin price. The note claims BTC may be on the verge of another price explosion similar to the 200 percent rise we saw earlier this year.
“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 below $9,084 low.”
The Goldman Sachs note, which was shared on Twitter by Three Arrows Capital CEO Su Zhu, outlined a short-term bitcoin price target of $13,971. If correct, that would see bitcoin recover to 2019 highs.
We should point out that Goldman Sachs’ analysis is based on the CMI bitcoin futures market. Hence, the gaps in the chart for weekends when futures markets are closed. The advice is therefore aimed squarely at institutional investors.
Using Elliot Wave theory, Goldman anticipates a short-term run-up which could hit 2019’s high.
“[Bitcoin] should find support near/around $11,094. As long as it avoids any contact with the top of the wave i at $10,791, there’s still room for at least one leg higher towards $12,916 and $13,971. Reaching these levels could mean completing a v wave count from July. Bottom line, watch for a short-term top/consolidation once satisfied.”
For those looking long-term, bitcoin poses a strong buying opportunity at current prices. Goldman Sachs said any pullback below $13,000 is an indication to accumulate. The note suggests that another price explosion, similar to what we saw in the first half of 2019, could be looming.
“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 Dec ‘18 through Jun ’19.”
Bitcoin is no stranger to 30 percent pullbacks. In fact, BTC went through numerous such retracements even during the epic bull-run of 2016-’17. Buying the bitcoin dip during a bull market has long been a profitable strategy.
The advice echoes other analysts in the cryptocurrency arena which advocate buying bitcoin when the price recedes from rapid runups. Goldman concludes the note by saying the price will likely consolidate again after hitting the $13,971 before pushing higher.