In a memo to investors, Goldman Sachs Vice President in the security division Sheba Jafari announced that the company foresees bitcoin reaching $8,000 before the consolidation level for the present rally.
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“The market has shown evidence of an impulsive rally since breaking above 6,044. Next in focus $7,941. Might consolidate there before continuing higher,” said Jafari.
Goldman Sachs has advised investors against a quick increase past $8,000 but anticipates the price of the cryptocurrency to advance after some consolidation.
The theory involved with the prediction is known as Elliott Wave Principle which involves a form of technical analysis that finance traders use to analyze financial market cycles and forecast market trends by identifying extremes in investor psychology, highs and lows in prices, and other collective factors.
“Given that this is just a third of five waves up, the implications are that bitcoin has potential to run further over time,” stated Jafari.