Last week former Fortress principal Michael Novogratz made headlines in the cryptocurrency world when he told attendees at the CB Insights Future of Fintech conference that he has cut holdings (in Bitcoin and Ethereum) after the cryptocurrencies' latest "spectacular run," warning that "Euthereum had likely hit its highs for the year," and "cryptocurrencies were likely the biggest bubble of his lifetime."
His caution was understandable: after all during a 2013 UBS conference, Novogratz said "put a little money in Bitcoin...Come back in a few years and it’s going to be worth a lot." We doubt even he knew how right he would end up being.
However, while his latest sentiment appears rather downbeat, Novogratz said he remained very "positively constructive" on the space overall, as he should: he still has 10% of his net worth invested in the sector. And, as Bloomberg reported, Novogratz says cryptocurrencies "could be worth north of $5 trillion in five years - if the industry can come out of the shadows."
So fast forward to Sunday evening Goldman's chief technician, Sheba Jafari, issued only his second forecast of where bitcoin is headed next which may accelerate Novogratz' crypto price target.
Recall, that as we first reported three weeks ago, Jafari said that "due to popular demand, it’s worth taking a quick look at Bitcoin here" and warned that "the market has come close (enough?) to reaching its extended (2.618) target for a 3rd of V-waves from the inception low at 3,134."
She concluded that she was "wary of a near-term top ahead of 3,134" and urged clients to "consider re-establishing bullish exposure between 2,330 and no lower than 1,915."She was right: on the very day his note came out, both bitcoin and ethereum hit their all time highs and shortly after suffered their biggest drop in over two years.
So what does Jafari thinks will happen next? According to the Goldman technician, Bitcoin is now "in wave IV of a sequence that started at the late-’10/early-’11 lows. Wave III came close enough to reaching its 2.618 extended target at 3,135. Wave IV has already retraced between 23.6% and 38.2% of the move since Jan. ‘15 to 2,330/ 1,915."What does this mean for the uninitiated? In short, while bitcoin remains in Wave IV, it could go up... or down. She explains:
It’s worth keeping in mind that fourth waves tend to be messy/complex. This means that it could remain sideways/overlapping for a little while longer. At this point, it’s important to look for either an ABC pattern or a more triangular ABCDE. The former would target somewhere close to 1,856; providing a much cleaner setup from which to consider getting back into the uptrend. The latter would hold within a 2,076/3,000 range for an extended period of time.
However, at that point the next major breakout higher would take place, one which would take bitcoin as high as $3,915.
Either way, eventually expecting one more leg higher; a 5th wave. From current levels, [Bitcoin] has a minimum target that goes out to 3,212 (if equal to the length of wave I). There’s potential to extend as far as 3,915 (if 1.618 times the length of wave I). It just might take time to get there.
Goldman's analyst concludes with the following summary: "[Bitcoin] could consolidate sideways for a while longer. Shouldn’t go much further than 1,857. Eventually targeting at least 3,212."
Here we can only adds that fans of bitcoin should probably hope that his is not one of those Goldman trade recos where the firm's prop trading desk is on the other side of the clients' trade...
Source : ZeroHedge
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$3000 is very strong psychological resistance for bitcoin. I guess BTC will more replace and consolidate before breaking that level.
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yeah true,
yes it is a strong psychological area but it's definitely going blow past it and next level is $4k, and then $5k.
I'm really happy to see that Mike Novogratz is bullish on Crypto Currencies in general. Seems that he's hedging a lot of his net worth against the economy into things like Bitcoin as a store of value. Personally, I saw a pretty nice Elliot Wave pattern happening in the last pump, and since then, we've been on a 3 Wave down retracement which I believe is almost over. I'm not giving financial advice here. Just saying that I'm very excited for the future. :-)
-@mattboyd
yeah, its have bright future.
No doubt in my mind. All cryptos are still in a super tiny market. I mean, 0,1% of the world population owns bitcoin. And the average bitcoin wallet value is what? About 100$ worth of bitcoin. I can't believe the people that are panicking and selling cryptos at this point, especially bitcoin. God bless those morons.
Yeah it's amazing to think how early this is in the development of cryptocurrencies. But I do wonder about the future of BTC, there are a lot of new coins coming out today that are very attractive. It's hard for the first of it's kind in any technology to maintain dominance once the field grows and newer competition comes in. I like BTC but wonder about the fork coming up, will it happen? I also wonder about competition from newer coins that look very solid.
Since when does Goldman care about BitCoin?
When they jump in things are really going to change.
Exactly! They think they can swing the crypto market just like they play with the stock market it seems.
The sad thing is - I think they may be right.
With the volatile nature of the market and it's susceptibility to FUD, these guys are old-hacks at manipulating markets. I'm a little afraid...
Yeah, I hear ya. They may be right because this story will be reported and read by many so it's a self-fulling prophecy.
They're just trying to stay relevant.
I think they already are jumping in slowly but yeah, it's definitely a sign when they make a comment on cryptos.
I'm not convinced that the analysis takes into account technical issues like network limits or the hard-fork debate. If it does have that kind of break out it would be highly speculative and volatile!
Completely agree.
Don't buy Bitcoin, is going to crash! XD
Wish I bought at 6 cents .
Can you imagine buying bitcoin at 6 cents? haha.... crazy.
Yea there was some very lucky people to get in early now millionaires with very little money 💵
Lol, I've meet this guy, funniest thing ever.
How many times have I heard this... been at this game since 2013.. I can't even count one hand how many times I've heard this narrative.
Wow.. Bubble popped
hahaha.
Saw this report from Golman Sachs live on CNBC. They are bullish, which is good sign for Bitcoin.
Thanks for posting, today has been a day of the "Return of the bulls" so hopefully with Goldman Sachs coming out and saying this hopefully even more bulls will come and hopefully you invested in some crypto, which considering your post I think so :)
It's interesting - I wonder if this statement from Goldman Sachs caused the (self-fulfilling prophecy) rise of BTC over the last 24 hours?
I hope in the near future the sector is worth around 5 trillion.
That would be amazing.
Let's see if his prediction is right, it most likely is.
I hate to say it but I think I agree with Goldman on this one... damn, I feel dirty just saying that...
Bitcoin may go that high, but it will be outperformed by many cryptos that are far more capable than it.
Which ones do you think will outperform BTC?
So should we expect $1,800 correction the next few weeks?
Some are saying Ethereum will surpass Bitcoin, what do you guys think? 3...2...1... fight!
I keep seeing the same thing posted about Ethereum passing Bitcoin as well but I see BTC staying the king. Main reason being BTC is an actually currency to convey value and for any transaction and ETH's main purpose is to buy gas on the Ethereum network.
I still see ETH as valuable like investing in Exxon or BP but I think BTC will still be more valuable.
EOS and Tezos are going hit ETH hard. No chances.
Would you elaborate please? I see the potential in both. What role do you think the Ethereum alliance will play, if any, in keeping Eth on top, or will they jump ship as well?
The flippening has a decent chance of flappening.
If it does, Dash is going to $500. Not much point holding Bitcoin in the hopes that it might become a capable product when it's SO far behind 2nd generation innovation.
I agree than from a certain angle DASH could be seen as about 20% better than bitcoin pre-segwit, for something to displace bitcoin it'd have to be 10x better. Good luck with your holdings when 8 currencies are going for fungibility and it's also coming to BTC post-segwit with schnorr signatures.
Yes.. whales think that can pull the market according to their will.... And actually is happening... like current situation , where crypto market is taking the blood bath, also witnesses ..
This comment has received a 0.06 % upvote from @booster thanks to: @qasimwaqar.
I have no doubt that crypto currencies will continue to rise. It is safe to say as long as BTC rises all other crypto's are expected to do the same.
thats great news
BTC have been on a bubble since it was created... Who cares, a bubble that never explode is good to me :D :D :D
It's not in A bubble. It's in A LOT of smaller bubbles, like any other asset. It's value is still ridiculously low.
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@wiedy
@wiedy
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Do you mean I am a "spammer"? How do I spam if I am just commenting under YOUR spam? I just want to warn people so lets see who gets more upvotes.
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You just want people to use your affiliate link thats all!
But yeah, thanks for the downvote!
Rant over @wiedy
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You Sir are straight up naive!
As you say you are there since two days and never got a payment!
They dont even tell you what coin you are "mining"
They claim to have paid out whopping 0.42 BTC thats not even 1500 USD haha; 12% interest per day 4500% annualy I mean come on man
I am not going to answer another time @wiedy out!
Yes... bitcoin is in a bubble after it hits tens of thousands of dollars 😂🙌🏼
still waiting:
upvoted mate :)
Very good Analysis
Technical Analysis is key for financial markets prediction
Hello, i wish to know more about technical analysis of these markets.You seem to know more than i do.I'm open to learning new things
There are so many cryptos now vying for attention that Bitcoin's finite number and history are making it more and more attractive. Assuming scaling issues are resolved in August $4k is more than reasonable in my opinion.
@zerohedge - now this is the type of BTC news post I like to see. I see it hitting $3,915 with no problems.
So much guesswork. Judging from previous trends, price graph analysis don't apply to Bitcoin. Nobody knows where the price will get to but either way, we'll meet up on the moon.
good prediction
Wow, if banks start focus on crypto, that means realy something will happen!! For us the crypto's cant go up too much :-) Keep on steem !
Yes may be $3000 above
but BITCOIN is king
Woohooo!!! Where do i jump in to catch that ride to the top!? BTC is going to be the world currency. It's gonna be awesome 👍
BITCOIN, why u no go up ლ(ಠ益ಠლ)
BITCOIN, why u no go up ლ(ಠ益ಠლ)
wow
now this one is funny :)
#bitcoin is steadily on the rise!! #awesome article!! :)
That would be incredible....would make a lot of people very very happy
Brilliant read. Thanks, @zer0hedge. Followed for more great insight to pass to my own Followers.
Bitcoin to the moon!
I've been trading for a few years now,where do i go about if i want to learn some basic technical analysis? Something a layman can easily understand,if something like that exist :D
I remember people saying bitcoin was in a bubble when it was $6.00 lol
I wish i had the sort of knowledge i have now about bitcoin, i would have quit my days job
Bitcoin will certainly rise, no doubt about it. How far it will rise no one knows for sure. Thank you for sharing that analysis :)
All these predictions are 100% speculation, one week they say it will crash the next it will reach for the skies. All just to write headlines. I mean look you already have $305 :)
Goldman is notorious for that! BTC may be a near-term freight train they exit early if so.
3700 sounds like music in my ears
Having worked in investment banking, the least I trust are people at investment banks.
I see that $3000 is less than what BTC will equal in the future and my expectations are that BTC is going to break the $4000 during the next 6 months
I also know a friend of mine that invested almost $60 in BTC in 2010 and now they deserve $886,000 that made him a millionaire in egypt
I like seeing people from these "traditional" banks and financial institutions showing interest in Bitcoin and other cryptocurrencies. Having these guys onboard is bound to help drive further adoption.
There actually will be a bubble in 2050
Just Wow...
Damn Son
BitCoin as well as other crypto has an unlimited potential just as long as Government as well as big banks do not lobby and regulate the market. Bankers as well and government are afraid of the technology because they cannot longer control wealth who has access to capital and track money.
What will affect bitcoin is the over saturation of new and useless cryptos that are now appearing every day. If the technology or the purpose behind the crypto is meaningless and useless it is hurting the market for those that are revolutionizing money, technology, and complete industry. I have not had a chance to explore many of the new ICO every day but i find that a lot of these new ICOs with no substance behind them. Crypto is the future but it is still and infant that can be damaged by the oversaturated market that can lead to people becoming skeptical of the value.
The question becomes will the rally happen right after the Aug 1 debut of segwit? Or do you think there will be another consolidation period before we ramp back up?
Do you think Segwit will have big impacts on ownership of btc
https://bitcoinmagazine.com/articles/countdown-segwit-these-are-dates-keep-eye/