Thomson Reuters
FILE PHOTO - A Bitcoin sign is seen in a window in Toronto
Bitcoin had a blistering first half of 2017. It rallied from about $1,000 a coin to a record high of near $3,000 before finishing June near $2,500. It booked a first half gain of about 168%.The historic run for the cryptocurrency has prompted observers in both the tech world and on Wall Street to talk about the cryptocurrncy being in a "bubble."
Last week, Jeffrey Kleintop, the chief global investment strategist at Charles Schwab, suggested bitcoin's bubble was unlike anything we have ever seen before. Kleintop's warning came just a few weeks after tech billionaire Mark Cuban tweeted, "I think it's in a bubble. I just don't know when or how much it corrects. When everyone is bragging about how easy they are making $=bubble."
But Goldman Sachs thinks bitcoin still has more room to run. In a note to clients sent out on Sunday, Sheba Jafari, head of technical strategy at Goldman Sachs, suggested that while bitcoin's correction hasn't run its course, it's ultimately heading higher.
Jafari wrote bitcoin is "still in a corrective 4th wave" that "shouldn't go much further than 1,857."
However, bitcoin enthusuasts shouldn't worry too much. From there, Jafari sees the fifth wave of the move taking the cryptocurrency to a new record high.
"From current levels, this has a minimum target that goes out to 3,212 (if equal to the length of wave I)," Jafari wrote. "There's potential to extend as far as 3,915 (if 1.618 times the length of wave I). It just might take time to get there."
Goldman Sachs
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