Well, according to Goldman Sachs, we should expect to see a drop and then a sizable pop.
According to notes out by lead chart analyst Sheba Jafari, we could likely see Bitcoin reach a high of $3,915 in the near future.
That marks roughly a 50% return from current Bitcoin prices.
Bitcoin is currently in the 4th wave of a potentially 5 wave move that started in late 2010/early 2011.
It's not all roses though...
Jafari said he fully expects to see the price decline rather substantially from current levels first.
According to Jafari, Bitcoin is currently in the 4th wave of potentially a 5 wave move. The 4th wave can be pretty messy and he fully expects the price of Bitcoin to decline to around $1,900 with the price likely not trading below $1,857. That would be roughly a 25% drop from current levels.
From there Jafari sees Bitcoin rallying hard all the way up near $4,000 per coin, or $3,915 to be exact, which would mark roughly a 100% return for anyone able to get in near those lows he is predicting.
Here is a look at the chart he is using to make his predictions:
According to Jafari:
"From current levels, this has a minimum target that goes out to $3,212 (if equal to the length of Wave I). From there, there's potential to extend as far as $3,915 (if 1.618 times the length of Wave I). It just might take a little time to get there."
As you can see, he is looking at a minimum target of around $3,200 and a maximum target of around $4,000. Either way, he is calling for new highs from Bitcoin in the coming weeks and months.
Charts lining up with major news announcements?
With the soft fork set to take place on August 1st, there is a lot of uncertainty around the price of Bitcoin and around the entire cryptocurrency space in general.
It is very possible that as we get closer to that date, traders and investors take some money off the table. Perhaps dropping the price down to around that $1,900 price point Jafari is calling for.
Then, once we get passed that date and people find out the world did not end, money could likely come flooding back into the coin, driving it to new all time highs and possibly all the way near that $4,000 number referenced by Jafari.
Basically, whether one is looking at the charts or just thinking about how people might react to major news events coming up, I think Jafari and Goldman present a very reasonable and likely prediction for what they think Bitcoin may do in the coming weeks and months.
*Caveat: No one has a crystal ball, Goldman included. So, make sure you take everything you read about price predictions with a grain of salt and understand that no one can predict the future.
Stay informed my friends!
Sources:
http://www.businessinsider.com/bitcoin-price-goldman-sachs-2017-7
http://www.cnbc.com/2017/07/03/goldman-sachs-says-bitcoin-could-rise-another-50-percent.html
Image Sources:
http://www.cbsnews.com/news/donald-trump-ensures-goldman-sachs-influence-lives-on/
http://www.businessinsider.com/bitcoin-price-goldman-sachs-2017-7
http://www.reddirtreport.com/prairie-opinions/conservative-view-%E2%80%93-who-needs-crystal-ball
