Goldman Sachs: $8,000 will be a major resistance level for Bitcoin?

Despite strict regulation in many countries and a damaging hard fork, Bitcoin continued to rise. After easily passing the $7,000 mark, Bitcoin once soared above $7,600.

However, just when Bitcoin was about to break through $80,000, Goldman Sachs poured cold water on it: $8,000 will be an important resistance level for Bitcoin.

In a report released on Sunday, two Goldman Sachs analysts, Sheba Jafari and Jack Abramowitz, pointed out that after breaking through the $6,000 mark in October, investors' speculative impulse increased, and Bitcoin may rise to $7,941. However, it is not easy for Bitcoin to break through $8,000, and $8,000 may become an important resistance level for Bitcoin.

Chart from: Goldman Sachs analysis report

However, Goldman Sachs also analyzed that if it conforms to the Elliott Wave Theory, Bitcoin still has room to rise to a higher price.

According to the "five ups and three downs" rule of the Elliott Wave Theory, Goldman Sachs said that Bitcoin is currently in the third upswing of this cycle, and the length of the fourth upswing is about 23.6% of the third wave; that is, Bitcoin will rise from $6,767 to $7,941. Of course, if there is a market correction, the price of Bitcoin may fall from $6,767 to $6,042.

Bitcoin has been rising all the way, surging by more than $1,500 in just one week, breaking through $7,600 and currently hovering around $7,000.

Regarding the trend of Bitcoin, some analysts are optimistic and even adjust the target price to $11,000, while other analysts believe that Bitcoin has become a market bubble.

Ronnie Moas, an analyst at Standpoint Research, said that the price of Bitcoin will stabilize at $7,500 by the end of the year, and will reach $11,000 in 2018, breaking through $20,000 in three years and $50,000 in ten years. Due to the long-term bull market of Bitcoin, Moas even believes that Bitcoin will challenge the hard currency status of gold and become "digital gold."

Wall Street Journal once mentioned that many investors and institutions, including Ethereum co-founder, Dalio, UBS, etc., have made it clear that the current craze for Bitcoin is a bubble.

Last week, the Chicago Mercantile Exchange Group announced that it would launch Bitcoin futures by the end of the year, which caused Bitcoin to soar rapidly, reaching $7,000 in two days.

Since the beginning of this year, the price of Bitcoin has increased sixfold, and its market value once exceeded $125 billion.