Goldman Sachs: Bitcoin will hit new highs in 2019, these pullbacks should be seen as opportunities to buy on dips

Global financial giant Goldman Sachs expects Bitcoin price to hit a new high of $13,971 in 2019 once the current correction is over.

Bitcoin Price Pulls Back 30% — Another Buying Opportunity?

In a note to investors, the Wall Street bank projected a short-term price target of $13,971 for Bitcoin. Based on current market value, this forecast suggests that the price of Bitcoin will rise by 25% during this rally.

Su Zhou of Three Arrows Capital posted a tweet on Monday (August 12, 2019) showing part of the Goldman Sachs notice. The prediction appears to rely on the "Elliot Wave Theory", which states that there is an observable pattern in the price behavior of assets that are controlled by herd mentality.

“What’s more surprising: Goldman Sachs has a bullish target on Bitcoin, do they have any target at all, or do they use the Elliott Wave Theory?

What personally surprises me most is that they didn’t bother to use a chart that includes weekend price action.”

This pattern moves between optimistic upward and pessimistic downward cycles. According to the report, if the Bitcoin price does not fall below $10,791, there is a high probability that it will rise to the $12,916 and $13,971 price levels.

Back in April 2019, Binance Research published a report highlighting the impact of herd mentality on crypto price behavior. According to the document, this effect is most pronounced in the late stages of an uptrend and early stages of a downtrend.

However, Goldman Sachs' analysis does not take into account weekend trading because it only uses data from Bitcoin futures. If the price of Bitcoin rises to $13,971, it will also mean a new high for Bitcoin prices in 2019, bringing the price of Bitcoin to within $6,000 of its all-time high in mid-December 2017.

BTC bull market remains strong

As previously reported, Bitcoin has seen a downward trend in the late summer season. After breaking above $13,000 in the second week of July, BTC has fallen all the way to the mid-$9,000s.

Since then, there has been a small recovery starting in late July, with the price of Bitcoin recording its highest weekly close in 2019 this past week.

According to Goldman Sachs’ analysis, any pullback in Bitcoin prices after it hit $13,971 would represent another buying opportunity. During its run to almost $20,000 in 2017, Bitcoin prices saw no fewer than eight 30% gains.

An excerpt from the Goldman Sachs notice reads:

“Any pullback from 12,916-13,971 should be viewed as a dip buying opportunity as long as the correction does not exceed the low of 9,084.”

Billionaire venture capitalist Tim Draper recently doubled down on his Bitcoin price prediction, noting that the top-ranked cryptocurrency will become the world’s dominant medium of exchange.