Bitcoin price could drop below $2500 as per Goldman Sachs – August 15, 2017

Bitcoin price continued its bullish surge to set a new record high of $4483 on Monday night. When the rally was looking unstoppable, the price started to settle a bit and is fluctuating around $4000 range.

Week over week the price gains have been very impressive to say the least. If this uptrend continues, the next resistance test will be at $4620 and then $4856.

Analysts are attributing this price rise to the tensions surrounding the situation with North Korea and the United States. Apparently, Kim Jong Un has plans to conduct a missile strike on Guam around August 15.

Bitcoin price usually gets boost from such situations as investors still try to look for higher yields outside of traditional markets.

Top Stories from the Crypto World

1. Bitcoin price could drop as far as $2221

According to Sheba Jafari, Goldman Sachs’ chart analyst, Bitcoin price could reach $4,827 in the coming days. Once it hits that level, Jafari estimates it could drop as low as $2,221.

Bitcoin is riding a “fifth wave” of an “impulsive” rally that could run as high as $4,827 in the short term, Sheba explains. 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.” she added.

2. Russia in discussions to start cryptocurrency mining

Russia has 20+ Gigawatt of surplus electricity. Igor Shuvalov, Russia’s First Deputy Prime Minister, has revealed that discussions are underway to create government cryptocurrency mining centres.

Russia is a country that has completed flipped their position on cryptocurrency laws. Up until two years ago they were looking to ban Bitcoin and other cryptocurrencies and now the country is in the process of finalizing a bill to provide a legal framework for digital currency including bitcoin.

3. Jack Dorsey endorses blockchain

The CEO of both Twitter and Square, Jack Dorsey, recently said he believes blockchain can be used to solve problems in a range of different areas.

He described the technology as the “next big unlock”, arguing that it has a plethora of applications beyond payments and the like.

“There are so many problems we can help solve [with blockchain] that are not just related to finance, but finance is an obvious one,” he said.