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