The world-famous investment bank Goldman Sachs has advised its investors to capitalise on the current drop in prices in the cryptocurrency sector and to buy bitcoin (BTC).
In a note from an analyst, a portion of which was tweeted by Su Zhu, co-founder and CEO of Three Arrows Capital, it is possible to read that Goldman Sachs has stated that the short-term target for bitcoin (BTC) is $13,971.
Unfortunately, usually when Goldman Sachs is bullish on something the price goes down…
In addition, the analyst advises his investors to consider buying bitcoin as soon as there is a good opportunity to buy.
The bank stated that, according to the Elliott wave analysis, BTC would have found support around the $11,094 figure and that there would be room for a move from $12,916 to $13,971.
The note indicates that:
“Any such retracement from $12,916-$13,971 should be viewed as an opportunity to buy on weakness as long as it doesn’t retrace further than the $9,084 low”.
It is interesting to notice that the prices used for the analysis do not include the trend of the market over the weekend and are probably based on data from the futures market.
Su Zhu appears quite puzzled by the analysis made by Goldman Sachs, precisely because of the lack of weekend data.
What is more surprising: that Goldman Sachs has a bullish target on $BTC, that they have any target at all, or that they use Elliott Wave Theory?
I'm personally most surprised they cant be bothered to use a chart that includes weekend price action. pic.twitter.com/ocpq7hr0qv
— Su Zhu 🦁 (@zhusu) August 12, 2019
Although the bank’s analysts are optimistic about bitcoin, it’s fair to remember that Goldman Sachs’ CEO and President, not so long ago, showed a lot of scepticism towards bitcoin, saying he didn’t own it and that it wasn’t for him.
On the other hand, however, he also stated that his bank is looking carefully at the tokenisation of the economy and stablecoins, following the launch a cryptocurrency by another big American bank: JP Morgan.