Bitcoin Could Hit Near $4,000: Goldman Sachs’ Chief Analyst

Bitcoin Could Hit Near $4,000: Goldman Sachs' Chief Analyst

 

Bitcoin Could Hit Near $4,000: Goldman Sachs’ Chief Analyst

 

Although bitcoin price has grown 3x at peak levels this year, better gains are yet to come, according to Goldman Sachs’ chief technician.

 

Bitcoin has been on a historic tear in 2017. After ringing in the year at $1,000 on the very first day of January, bitcoin price reached an all-time high of $3,000 in mid-June. The remarkable rise amid an overall boom period for cryptocurrencies has seen skepticism from some observers who have pointed to inflated values amid accusations of a bubble. Others are looking at more bullish gains.

 

In a note sent to clients, Sheba Jafari – Goldman Sachs’ head of technical strategy predicts bitcoin to climb higher, ultimately getting near $4,000.

 

Jafari, who was persuaded into covering bitcoin by Goldman Sachs’ clients recently, sees the current corrective course to tread longer with upward gains to be the ultimate outcome.

 

Jafari, who is also the vice president of the investment bank’s securities division, sees bitcoin “still in a corrective 4th wave”, as reported by the Business Insider.

 

That fourth wave “shouldn’t go much further (lower) than $1,857”, the head analyst told her Wall Street clients.

 

The upcoming 5th wave is to take a bullish turn, according to her analysis.

 

She wrote:

 

From current levels, this has been a minimum target that goes out to $3,212. There’s potential to extend as far as $3,915. It just might take time to get there.

 

It was “due to popular demand” that Jafari began covering bitcoin a month ago. The first analysis, in comparison, was a more bearish take based on price trends at the time.

 

As things stand, bitcoin is up 5.28% on the day, according to data from CoinmarketCap. The cryptocurrency is trading at $2573 on a global average and struck a high of $2,601 on Monday, a 7-day high following the downward turn a week ago.

 

On Bitstamp, bitcoin hit a high of $2,595 on Monday.

 

David Ogden
Entrepreneur

David Ogden

 

Author:Samburaj Das

David https://markethive.com/david-ogden

Ethereum Price Drops Below $300 Amid Technical Issues and Cryptocurrency ICO Hype

Ethereum Price Drops Below $300 Amid Technical Issues and Cryptocurrency ICO Hype

Ethereum Price Drops Below $300 Amid Technical Issues and Cryptocurrency ICO Hype

 

 

Things are not looking all that great for Ethereum right now. The popular cryptocurrency suffered a major crash not too long ago and it remains the market is still recovering. The past two days have heralded another downturn for Ether, making it highly doubtful Ethereum will pass Bitcoin in market cap anytime soon. It seems safe to say more volatility is on the horizon for Ethereum holders.

 

WHAT IS GOING ON WITH THE ETHEREUM PRICE?

 

Looking over the Ethereum price charts leaves traders and investors disappointed, as their hopes for challenging Bitcoin’s crown subside. More specifically, the ETH price has taken another beating, as it declined by 7.65% over the past 24 hours. This puts the value of one Ether well below the US$300 mark and it is possible this value will keep heading toward US$270 or lower over the coming days. This momentum is not entirely surprising given Ethereum’s bullish trend throughout the first half of 2017.

 

It is not hard to forget once ETH was worth under US$11 back in early January of this year. Things have certainly picked up over the past few months, culminating in an Ether price peak of nearly US$400, according to Coinmarketcap. Such a spectacular price increase can only be met with future price volatility, which is what we are seeing on a daily basis right now. Even so, the Ether value increase has been nothing short of impressive this year.

 

Ethereum enthusiasts have referred to a phenomenon known as the flippening all year. This trend would occur once Ethereum’s market cap surpasses that of Bitcoin. Although both currencies were only separated by “just” US$8bn, the gap has widened once again. More specifically, Bitcoin’s market cap is close to US$41bn right now, whereas Ethereum’s is only US$26.32bn. The flippening will not be happening anytime soon at this rate.

 

The bigger question is why Ethereum is facing such a setback right now. Shifting market conditions are likely the culprit. Moreover, the Ethereum blockchain and its technology are weighed down by the influx of cryptocurrency ICOs. Transactions are confirmed far slower when a big ICO happens, and smart contracts used by these projects often contain issues which need to be fixed later on. The technology is still premature, yet investors also see this can become a much bigger problem if things aren’t resolved quickly.

 

Speaking of cryptocurrency ICOs, they have quickly become the main use case of the Ether currency. That is not necessarily a positive development either. With so many projects raising funds in Ether, the chances of a market “dump” will increase as well. When teams need funding, they will convert ETH to fiat currency, creating negative pressure across the exchanges. When more projects sell off their raised funds, the price per ETH will undoubtedly continue to go down quite quickly. It is unclear if that is part of the ongoing price drop right now, but it is something to keep in mind.

 

It is unclear what the future will hold for Ethereum right now. The Ethereum price is very volatile, which is only to be expected at this point. However, Ethereum is not a store-of-value by any means. With so many “dumb money” flowing into Ethereum to participate in cryptocurrency ICOs, it is virtually impossible to determine the real value of the existing coin supply. Technical issues are becoming a major problem as well. If this trend keeps up, the flippening may never happen at all. These are interesting times for Ethereum to prove its value, but so far, the project leaves quite a bit to be desired.

David Ogden
Entrepreneur

David Ogden Entrepreneur

 

Author: JP Buntinx

David https://markethive.com/david-ogden