Bitcoin’s latest leap higher brings the digital currency closer to a near-term top, as stated by an analyst from Goldman Sachs.
The digital currency is said to be riding is “fifth wave” of an “impulsive” said technical analyst, Sheba Jafari, in a Sunday reports of charts. This rally could easily run as high as $4,827 in the short term.
However, “once a full five-wave sequence is in place, the market should in theory enter a corrective phase,” she said. “This can last at least one-third of the time it took to complete the preceding advance and retrace at least 38.2 percent of the entire move.”
Bitcoin hit broke through another high of $4,348.23 on Monday, According to Coindesk, multiplying its current value for the year by four which leaves just 11 percent gains for bitcoin before hitting the high end of Jafari’s forecast.
Bitcoin is already above $4,300 which is a bit off from Jafari’s forecast of $4m133 price which he said, “A level from which to watch for signs of a near-term consolidation.”
Although Jafari didn’t explicitly name it, the five-wave principle of technical analysis is known as the “Elliot wave”. In July, The Elliott Wave Theorist pointed out that bitcoin is “making a final and fifth wave from sic cents” after predicting that the digital currency’s surge seven years ago.
Bitcoin would also have to fall under $2,935 “to signal that a top is already in place” Jafari said in the report.