Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
Goldman Sachs’ technical analysts Sheba Jafari and Jack Abramowitz believe Bitcoin could reach at least $7,941, according to the message sent to the company’s clients on Monday.
The unprecedented bullish run in the price and valuations of Bitcoin, in the past two weeks, has swept a new wave of optimism within retail investors and big financial institutions alike. Off lately, the fourth largest bank in U.S. – Goldman Sachs – has been showing optimism in this cryptocurrency and believes that Bitcoin has a bright future going ahead.
Last week, Bitcoin convincingly crossed the $7000 mark on the news that CME Group of U.S. is going to start Bitcoin Futures contract by the year-end. CME has announced that it also keep an option for all cash-settled contracts which is expected to bring more liquidity in the cryptocurrency market. The bullish momentum in Bitcoin prices when it finally settled after Bitcoin hitting an all-time high of $7598 this Monday.
Now, the vice president of the Goldman Sachs FICC market strategies team, Sheba Jafari says that the Bitcoin Price is all set to inch even high and will move closer to $8000 where it will be consolidating before the next move. Sheba made a forecast during the weekend where she writes “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.”
After hitting its all-time high, Bitcoin fell by nearly 3% as per coinmarketcap.com to around $7200 on Tuesday while it seems to have recovered from then and is currently trading at a price of $7379.13. However, in addition to the optimism fueled by the CME Group’s announced of bitcoin futures contracts, many analysts also believe that the possibility of Segwit2x hard fork is pushing the Bitcoin prices higher. SegWit2x fork is scheduled next week on 16th of November and Trevor Koverko, CEO of Polymath believes that people are purchasing Bitcoins with the hopes and anticipation that they could get additional bitcoins.
Another analyst Willy Woo believes that Bitcoin is heading for a major correction by the end of November after the SegWit2x fork. The analysts say that a large number of investors have pulled their money out of altcoins for the time-being and pumped it into buying Bitcoins for getting new coins during the SegWit2x fork. Once the hard fork is initiated and the bitcoin investors get new coins, they will again pull-out all their investments and distribute it back into buying altcoins.
On the other hand, there are contrarian views that the market has given enough time for investors to prepare for the hard fork and it is quite unlikely that the bitcoin prices will suddenly crash post SegWit2x. While investing in such instruments, one should always take notice that Bitcoin is vulnerable to huge volatility and have shown huge swings in either direction based on good and bad news.