A prominent Wall Street analyst has changed her tune on bitcoin, and now expects big upside for the cryptocurrency, based on updated technical analysis of BTC’s chart.
Sheba Jafari, the head of technical strategy at Goldman Sachs, notes that bitcoin “may need another few swings” before it tests new highs, however. The analyst says that the inability to break out above BTC’s June 13 high of $3,000 means it may be forming a technical triangle pattern.
A resulting bearish move could take bitcoin down as low as $1,786, she writes, amid as may as five big downswings.
As Business Insider notes, the case gets a lot more bullish from there:
But fear not, says Jafari, because a run at record highs is in the cards as bitcoin remains in the fourth wave of a five wave series. “Anything above 3,000 (Jun. 13th high) will suggest potential to have already started wave V, which again has a minimum target at 2,988 and scope to reach 3,691 (the latter being a preferred target as this assumes a new high.),” Jafari wrote in a note to clients sent out on Monday.
So far Jafari has been spot on in her analysis. In early July, Jafari suggested bitcoin wouldn’t fall too far below $1,857. It fell to somewhere between $1,758 or $1,852 (depending on which data you use). A few weeks earlier, Jafari predicted a big drop was coming after bitcoin hit $3,000.
Bitcoin was trading at $2559.77 on Wednesday morning, down 1.2%. The cryptocurrency has surged 164% year-to-date.