Goldman Sachs: Bitcoin to grow then to drop significantly

Goldman Sachs analytics predictions: Bitcoin is to grow more but then to drop to $2,221
15 August

The Bitcoin price may grow to almost $5,000 but after that it is likely that the correction will take place and the price will drop to about $2,000, claims Goldman Sachs' chart analyst Sheba Jafari, CNBC reports.

Thus, according to the analyst, Bitcoin is riding a "fifth wave" of an "impulsive" rally that could 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," Sheba Jafari argues.

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.
 

Sheba Jafari
Goldman Sachs' chart analyst

At the time of the report's publication, Jafari said that correction could take Bitcoin down to around $2,221.

Bitcoin price charts on goldmansachs.com Bitcoin price charts on goldmansachs.com

Although Jafari didn't explicitly name it, the five-wave principle of technical analysis is known as the "Elliott Wave." Thus, earlier The Elliott Wave Theorist newsletter also pointed out that Bitcoin is "making a final fifth wave from six cents" after predicting the digital currency's surge seven years ago.

Bitcoin Waves on elliottwave.com Bitcoin Waves on elliottwave.com

Bitcoin would also have to fall under $2,935 "to signal that a top is already in place," Jafari detailed in the report.

Ethereum network is still unstable

Byzantium had executed on Monday, but developers aren't ready to call the software transition complete
18 October

Organizations and developers are better off refraining from launching large projects until the Ethereum network is fully stable after the recent Byzantium update. This is said by the Gavin Wood, Parity Technologies head and reported by the Coindesk.

Since new versions of the software were released just days before the fork, much of the network has not yet been updated. So, at the time of press, slightly more than 25% of Parity customers updated, in Geth this indicator is slightly higher - about 59%. So, in total, the update was made about 45% of the network.

Another aspect that should also be taken into account is the short time for testing. In particular, the developers recalled previous versions of the software, discovering critical errors that could make the network vulnerable to DoS attacks or lead to incompatibility between nodes and, as a consequence, network sharing.

Therefore, the question of how safe the network is at the moment is fully justified and, taking into account what has been said above, remains open. This is exactly what Gavin Wood warned, recommending at this stage to refrain from launching large-scale projects.

In addition to the nodes that have yet to update, there is also a possibility that in the current Byzantium software there may be bugs that endanger the security of the Ethereum network. The most dangerous among them is a bug of consensus, in which nodes can not communicate. Its result can be the separation of the block-man into several incompatible chains.

As far as is known, at the moment developers are conducting extensive tests, trying to detect such bugs before they are active. As Gavin Wood says, if the network does contain such a bug, it will take several days to prove itself.

I don't think anyone believed the network was going to self-combust on block 4,370,000.
 

Gavin Wood
Head, Parity Technologies

The head of Parity Technologies is also convinced that if problems are discovered, the Ethereum development team will quickly release new updates designed to prevent any harm to the platform.