Speculation around exactly how high bitcoin prices could go has been fuelled by a note issued by a pair of Goldman Sachs technical analysts. In it, Sheba Jafari and Jack Abramowitz point out that the current signs are that the digital currency may be ready to make another series of price jumps.
Indeed, the analysts suggest that bitcoin could soon reach as high as $8,000 (£6,086).This comes at a time when the currency reached a new high of over $7,500 before falling back down under that level. The prediction from the investment bankers would, therefore, mean a new record high being set.
Jafari and Abramowitz talked about the potential for an “impulsive advance” that could take the price of bitcoin up to “at least $7,941”. They called this the “minimum target” in the 3rd of 5 waves up, and advised to “watch for signs of a consolidation”.
Their analysis is based on an investment principle known as the Elliott Wave. They continued by pointing out that since this is just the 3rd of 5 waves up, it appears that bitcoin still has some distance to run before reaching its eventual peak.
This isn’t the first time that Goldman Sachs has advised its clients on the possible price variances in cryptocurrencies lately. It also comes along at the same time that rumours suggest that the global investing banking firm may be considering opening up a new brokerage service for digital currencies like bitcoin.
In addition, the company’s CEO, Lloyd Blankfein, was non-committal in a recent interview about the future of bitcoin. He said that he has realised over the years then even things that he doesn’t love can “work out pretty well” and pointed out that he is open to the idea of digital currencies.
Among the factors that are believed to be driving recent price increases are a higher level of demand from Japan and the announcement of a bitcoin futures investment due out soon that could move the currency into the mainstream.
A New Fork Coming Soon
An issue that is also influencing bitcoin investors just now is the upcoming fork in the network. There have been differing opinions in the cryptocurrency community about the SegWit2x upgrade, so it is possible that a new currency could split off from the main bitcoin just like bitcoin gold and bitcoin cash have done.
This would mean that existing investors would get free coins from the split, which could be a reason why people are buying up more coins just now.
Yet, one country where people won’t be using bitcoin for many real-life transactions any time soon is India. The director of the Reserve Bank of India said that cryptocurrencies like this won’t be used “for any payments and settlements in the country”.
There appears to be unease among Indian finance circles about the possibility of digital currencies being used for money laundering and fraud purposes. At the time of writing, bitcoin is basically just an investment vehicle in India, as there are extremely limited places where the coins can be spent.