From Craig Wright claims to Goldman Sachs “hurtful” analysis to price gains and Grayscale investments, it has been some sorts of a rollercoaster ride for Bitcoin and the crypto market as a whole.
The community was expecting something nice, an endorsement and a chance for the investment bank to put their weight behind the digital gold but instead they thrashed the sector. Goldman Sachs expectations and those of the crypto community diverged, took different paths and their views clashed.
Goldman Sachs: Bitcoin is Volatile and Price is driven by Speculators
Goldman Sachs took swipe at Bitcoin saying that there is no tangible evidence that the coin can be an effective hedge against inflation. Worse, its market is not developed and holding the coin doesn’t translate to cash flow or earnings.
This is on top of the volatile nature of Bitcoin (and crypto) prices stemming from the fact that the coin is driven by retailers keen on buying at a higher price. The race for better and higher prices makes the coin unstable and may have advised some hedge funds to invest though their consideration may not be assessed as objective or rational.
Grayscale Investment Ramping up BTC Purchase
The dismissal wasn’t received well since institutional grade investors are already flocking in and pumping their hard earned capital to the world’s most valuable coin.
At the moment, the coin is trending above the $9,400 level and most importantly above $9,000, several bucks away from the psychological $10,000–$10,500 sell wall.
Unfazed, Grayscale Investment has been ramping up their purchase of the digital gold while Paul Tudor Jones, the billionaire, has allocated two percent of his funds to Bitcoin Futures.
BTC/USD Price Analysis
Price wise, BTC prices are volatile and within a bullish path. In the last week of trading, the coin has recouped losses and is up six percent.
The re-emergence of bulls could be from fundamental reasons but technically, the 20-day moving average or the middle BB and the $8,500 level acts as the immediate support lines. Any breakdown, especially of $8,500 as reiterated in previous BTC/USD price analysis could trigger a wave of lower lows towards $7,500.
On the flip side, bulls could break away from the $1,500 trade range marked by $8,500 and $10,000. Any break above $10,000 at the back of high trading volumes could spark a wave of buying activity as BTC bulls aim for at Jun 2019 highs. This breakout will present an opportunity for risk-averse traders to enter longs with targets at $14,800.
Disclaimer: This is not investment advice. Opinions expressed here are those of the author and not the view of the publication.
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