Goldman Sachs experienced analyst: Bitcoin will rise further, then fall

The financial analyst from Goldman Sachs corporation, Sheba Jafari, whose previous prognoses turned out to be true, now says that Bitcoin has almost reached its peak and after gaining approximately $500 more it is going to drop to $2,900 or even lower, CNBC reports.

According to her, the price trend is now on its fifth step or impulsive wave, after which the dynamics will become corrective, or, in other words, the prices will start to drop. This is demonstrated on the following diagram by Goldman Sachs.

Sheba Jafari here used the Elliott wave principle, the method of technical analysis that is based on the principle that market dynamics can be classified by patterns, or waves. Technical analysts also do not consider the market participants to be always rational human beings, so they take the overall market sentiment and crowd psychology into consideration as well.

It should be once again reminded that there have been many events in global market history when an asset rapidly became valuable and then stopped its growth and dropped in value dramatically. However modern Bitcoin might be, it is still a currency that follows the market laws.

Not many analysts right now share Sheba Jafari’s sentiment, many investors are cheerful about current growth, the market is still in its bullish stage and after the drop the bulls (current buyers) will connect the future drop to some external factors like ‘this drop happened due to the huge scandal including bitcoins’, but any external factor will not be the real reason or root cause. Every bullish trend ends eventually, it’s important to know when. Everybody will soon see if Sheba Jafari is right again or maybe the prices will grow for a bit longer than she expected, but overall the prognosis seems credible.