Goldman Sees Bitcoin Having More Room to Run, But a Pull Back is in Store

Bitcoin’s swift run ups to record highs recently may be coming to an end, but before it does, it could see $8.000.

That’s the message from Goldman Sachs, which has released a note cautioning traders against betting on Bitcoin going above $8.000.

The run up

Over the weekend, Bitcoin’s price surged above $7,500 before retreating Monday to below $7,000. It was only just Oct. 20 when Bitcoin had set another record, pricing above $6,000.

Bloomberg explains how technical analysts for Goldman’s see the run up. These analysts, Sheba Jafari and Jack Abramowitz, cited pricing levels tracked under what’s known as Elliott Wave theory as the basis for their conclusion. Named after Ralph Nelson Elliott, the theory is based on the thought that stock markets trade in repetitive cycles.

“Given that this is just a third of five waves up, the implications are that bitcoin has potential to run further over time.” – Goldman Sachs

Bloomberg noted that although the Goldman analysts say we might reach a pause, they’re still optimistic the cryptocurrency will move higher.

For or against Bitcoin?

This note comes on the heels of Goldman CEO Lloyd Blankfein saying he was not willing to “pooh pooh” on Bitcoin, and that he was open to it. The CEO of one of the world’s largest banks said he has not

We told you that he seemed willing to take the time to learn more about digital coins, and that he said he could see a world in which Bitcoin is a form of currency.

A Goldman spokeswoman has said that in response to client interest in digital currencies, the investment bank was exploring how best to serve them in this space.

If Goldman ever decides to get into the crypto space, it would be the first blue-chip financial services firm to do so.

Maybe such a move could bring JP Morgan’s Jamie Dimon around to accept Bitcoin as not being just for murderers.