Bitcoin's latest leap higher brings the digital currency closer to a near-term top, Goldman Sachs' chart analyst said. <\/p>\n
The digital currency is riding a \"fifth wave\" of an \"impulsive\" rally that could run as high as $4,827 in the short term, technical analyst Sheba Jafari said in a Sunday report of charts to watch for the week ahead. <\/p>\n
However, \"once a full five-wave sequence is in place, the market should in theory enter a corrective phase,\" she said. \"This can last at least one-third of the time it took to complete the preceding advance and retrace at least 38.2 percent of the entire move.\" <\/p>\n
At the time of the report's publication, Jafari said that correction could take bitcoin down to around $2,221. <\/p>\n
Bitcoin is nearing its target for the \"fifth wave\" that theoretically leads to a correction <\/p>\n<\/p>\n
Source: Goldman Sachs <\/p>\n
Bitcoin hit a record high of $4,348.23 on Monday, according to CoinDesk, quadrupling in value for the year. That leaves just 11 percent in gains for bitcoin before hitting the high end of Jafari's forecast. <\/p>\n
Already at above $4,300, bitcoin trades well beyond the $4,133 price that Jafari identified as possibly \"a level from which to watch for signs of a near-term consolidation.\" <\/p>\n
Although Jafari didn't explicitly name it, the five-wave principle of technical analysis is known as the \"Elliott Wave.\" In July, The Elliott Wave Theorist newsletter also pointed out that bitcoin is \"making a final fifth wave from six cents\" after predicting the digital currency's surge seven years ago. <\/p>\n
That said, other analysts predict bitcoin can climb into the tens of thousands in the next few years. They expect that growing investor interest in a digital currency with a limited circulation of 21 million coins should naturally drive prices higher. <\/p>\n
Bitcoin would also have to fall under $2,935 \"to signal that a top is already in place,\" Jafari said in the report. <\/p>\n
Dramatic price swings of several hundred dollars or more are not uncommon in the digital currency world. In the month after hitting a prior record of $3,025 in mid-June, bitcoin lost more than $1,000, before rallying to all-time highs in the last two weeks. <\/p>\n
Analysts attributed the gains to investor optimism about bitcoin after the uneventful bitcoin split on Aug. 1 into bitcoin and bitcoin cash, as well as greater interest from institutional investors. <\/p>\n
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Goldman Sachs says bitcoin may rise about $500 more, before losing half its value - CNBC<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Bitcoin's latest leap higher brings the digital currency closer to a near-term top, Goldman Sachs' chart analyst said. The digital currency is riding a \"fifth wave\" of an \"impulsive\" rally that could run as high as $4,827 in the short term, technical analyst Sheba Jafari said in a Sunday report of charts to watch for the week ahead. However, \"once a full five-wave sequence is in place, the market should in theory enter a corrective phase,\" she said Continue reading