Goldman Sachs: Bullish on Bitcoin | Crypto Markets

Eric, the bitcoin price remained quite stable in the last 24 hours. Are there any specific movement that you would like to point out? Maybe what are the main support and resistance levels? And if you consider that we are still in an upward trend.

So bitcoin actually did something pretty significant last night with closing the weekly. We closed above a level that we haven't closed above in well over a year. So if you remember back on over here From February of 2018, Bitcoin got a pretty nasty bull trap in this area just about a year and a half ago. And to get back above it, to actually close our first weekly above it for the first time in literally a year and a half, is quite significant to me as this was a trappy area. So there's multiple things going on here. Usually when you see an area like this kind of get special attention, it's because we're looking at institutional order flow dynamics at play. You see big players essentially presenting the illusion of a massive breakout right in over here to the upside. What does it end up turning into a trap? So tells us that going forwards here, there's going to be a massive pivot on price action. You can see it still gets respected in our more current times just about a month ago in July, and then once again, just as of yesterday, we actually closed above this region. So to me, that does indicate that longer term the trajectory is still to the upside. I'll still be looking for this to trend to the upside. Timing of this sort of thing is always going to be variable. I don't feel too confident on talking on something like that. But overall, I do believe that we're seeing constructive behavior which is, you know, going to lead on to higher prices, you know, over these next few months.

Bitcoin experienced a sudden drop on Saturday, which brought it down $400 in just a few minutes. So what do you think could be the cause of such an abrupt drop? And don't you think that like, that could be involving some big whale, so a big owner of a big quantity of bitcoin?

Yeah, I mean, it's definitely possible. The thing is, you know, when we see a drop like that on the weekend, weekend players are, sorry, weekend typically just involve less amount of people in the market, so there's lower liquidity. So you can force these sorts of movements a lot easier. It doesn't take as much capital to wash some people out. And with bitcoins posturing overall in the higher time frames, I'd imagine that bigger players are probably trying to run out the over leveraged people with that nice little move to the downside. Now, of course, there were some formations in play as well. We had a symmetrical triangle that we broke to the downside, which actually hit one to one. And you know, some other technicals at plays, you know, that we suggested a move down there. But at the end of the day, like what, you know, what really happened with the move? Well, the only answer that I can ever give ever is, and it's a boring answer, but it's true. There's. There's more sellers and buyers. It wasn't one single person. Maybe, maybe not. We'll never know. It also doesn't really matter if we know or not. The trading is the same. Right. The only thing that we can kind of standardize in understanding a price action is quite by quite literally just looking at the footprints in price action. Not necessarily diving into perhaps subjective reasons why people may or may not be selling at a price like that. But if I had to do a little bit of mental masturbation with it, I would say probably at some, probably someone wanted to watch some overleveraged people out and looking at the higher timeframes, looking at the general trajectory of bitcoin, they're probably preparing for a countertrend move essentially based off that.

Can you tell us a bit more about altcoins now? So there are any other altcoins displaying interesting performances that you would like to talk about?

Yeah, so a lot of altcoins bounce recently. I'm going to be looking at the bitcoin dominance chart right here. So this is essentially charting bitcoins market cap versus all of the, all of the altcoins in this market. And just like bitcoin's price, the trend has been extremely strong to the upside. While we did find a little bit of a top right here. These are the 200 simple and 200 expansion moving averages right here. I do think that this is massively bullish over a long period of time. Looking at our higher timeframes like a monthly. Yes, we just heard our first resistance. But you know, do I think this continues on over time? Yes, I do. I'd be super bullish on this. So while I do think that a lot of alts actually do look interesting here, they're going to probably pop up a little bit more as this comes down off this first major top. I'd say longer term, do I think that it's still interesting? Not so much. I mean, even just looking across the board, we're actually seeing something very, very, very, very, very Unique right now in this market, very rarely do we see and bitcoin go in different directions. Versus US dollar versus satoshis. Yeah, absolutely. That's how it's designed. But versus US dollar, very rarely do we think do we see the market kind of bifurcate like that. Usually everything kind of moves with each other. And right now we see bitcoin kind of in a more bullish posturing. But looking at all the top altcoins I see, I don't see anything that I really like. I mean, just, you know, for example, right here, ethereum looks very sick. Looking at litecoin, litecoin looks very, very sick. I mean, these are not good setups right here. In the past, though, we very rarely see the markets actually bifurcate. So I do have a little bit of difficult time saying that all coins are going to go down while bitcoin goes up. We just very rarely see that. But I would say that if bitcoin is going to break to the upside here, if bitcoin is really going to get that fall through that we were speaking about earlier, that's likely going to pass on through to the altcoins, which is going to affect them doubly as they're kind of like an emotional little brother in a sense, playing out those moves more aggressively. So I would say that's looking at bitcoin or. Sorry, look. You know, looking at the general altcoin sphere, kind of like the gist of what I'm saying is, versus, if we're looking at them versus satoshis, probably going to bounce a little bit here. I think that the bounces get extended, you know, a little bit more. But longer term, I would be actually looking for those get faded on most of them. Of course, there's some stronger ones here and there. I think the ones that stand out are the ones that have been rallying for the past year. Contrary to the. To the. To the. To the general market direction, which is very impressive when they're rallying with bitcoin versus satoshi. So something like Chainlink, I believe, had a good chart. I think Ren kind of stood out. Ren btc, whatever that is. People ask about it a lot. And there's a couple other ones. Maybe it's Mona. No, I'm probably not recalling it perfectly, but there's been a couple ones. Basically, the general gist is if your altcoin has been rallying for the past year or any time during the past year with bitcoin versus satoshis, that's probably a good sign. And those probably are going to be the beneficiaries of any sort of a major reprieve here when we're looking at the bitcoin dominance starting to fall back a little bit.

Another question would be related to Goldman Sachs which lately issued a report, an analysis about bitcoin price. They seem to be quite bullish. They said that the short term target for bitcoin now is like $13,971 and that investors should buy in the current situation during dips as long as we don't trace lower than $9,084. So I would like to ask you, do you agree with this analysis and whether you think that Goldman Sachs being like a big institutional investors making this kind of prediction can have any impact or implication for the price and in general for, for the industry?

Okay. Yeah. So Goldman Sachs coming, coming out and saying something like this is, is a big deal. Actually they are one of the more reputable players in this game. And from my, from my, from my experience in traditional markets, when Goldman Sachs says something like that, it typically does hold some weight. Do I agree with their analysis overall? I mean I suppose that we would both be generally bullish over the long term. Is what the, is what it kind of sounds like like they're getting out. Would I agree with their targets to the downside? I would, I would disagree. I think that, I think that bitcoin loses its bullish composure anywhere below 102 would be, would be a massive blow if we, if we took that out to the downside. And the 9500 would be. I, I would, I'd be looking for significantly lower price if that were to happen. So I don't really see where they're getting 9,000 from. But overall I do agree with them and I would say that is it a good thing that, that Goldman Sachs is getting into the game like this? I mean it's an inevitable thing. My experience in the traditional markets, when a big bank comes out and says something like this, typically it does cause an initial reaction with the retailers and then things get kind of faded over time and usually you see that expectation get faded over the medium term, if you want to call it that, the next couple of weeks perhaps and then longer term actually a lot of the time they have been right to be fair.

Cointelegraph like subscribe and Hodl Sam.