Bitcoin plunges below Goldman Sachs' target before rebounding sharply


Bitcoin
A Bitcoin sign is seen in
a window in Toronto.

Reuters/Mark
Blinch


Bitcoin‘s
bubble has officially burst.

The cryptocurrency
plunged nearly 20%
over the weekend, putting in a low of
$1,758 a coin before recouping some of those losses. It’s
currently trading at $2,048.

At that point, bitcoin was down more than 40% from its record
high of about $3,000, set on June 12. 

The weekend plunge pushed the cryptocurrency below the target
of Sheba Jafari, the head of technical strategy
at
Goldman Sachs
. In early July, Jafari put out a note
saying 
bitcoin was “still in a corrective 4th
wave” that “shouldn’t go much further than 1,857.” 

Jafari wasn’t the only one who thought bitcoin was getting ahead
of itself.

Tech billionaire
Mark Cuban suggested bitcoin was in a “bubble.”
Back on June
6, just before the cryptocurrenct put in its record high, 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.”

Additionally, Jeffrey Kleintop, the chief global
investment strategist at Charles Schwab, noted bitcoin
was in a bubble unlike any we had ever seen
before

As for where bitcoin will go from here, Jafari’s July 3 note
suggested that after a big drop, a fifth wave would take bitcoin
to record highs. “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.”

Even with the recent plunge, butcoin is still up 113% in
2017.


Bitcoin
Markets
Insider


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