Summary:

• Goldman Sachs projects that Bitcoin price could reach $8000, the prediction based on the Elliot wave theory
• Bitcoin (BTCUSD on xStation5) breaks through its support, gains still possible though
• Reserve Bank of India (RBI) makes a notable announcement on cryptocurrencies

Bitcoin has slowed down its rally since the beginning of this week after trying to achieve a round $8000. Even as the price has drawn a potential bearish candlestick of late, Goldman Sachs sees further space to gain. As a result the US bank made an update of a technical view of Bitcoin forecasting that it might be poised to breach $8000 before long. The analysis was based on the Elliot wave theory, the chart below depicts a Goldman’s point of view on this topic.

Goldman Sachs’ analysts second-guess Bitcoin to cross $8000 based on the Elliot wave theory. Source: businessinsider.com

In a note to its customers the bank wrote that Bitcoin “exceeded an equality target from the July low at 6,044”. Moving on, analysts claimed that “this break indicated potential for an impulsive advance, one that could reach at least 7,941. This is the minimum target for a 3rd of 5-waves up and should therefore be a level from which to watch for signs of a consolidation”.

Bitcoin failed to stay above an upper limit of a channel which could constitute a support right now. Source: xStation5

We mentioned a possible evening star pattern yesterday which was drawn on a daily chart after all. Right now one may suspect that buyers may face some obstacles in the vicinity of an upper boundary of a channel and once a bearish candlestick is formed, it could lead to a retreat. On the other hand, a breakout of this level along with the top of the above-mentioned pattern could result in an extended leg higher which might cross $8000 ultimately. To sum up, an orange circle seems to be a crucial level which could decide on a further direction seen on the digital currency.

There is no doubt that cryptocurrencies have already impressed many people, countries, central banks or companies, however the Indian central bank begs to differ and makes a relevant announcement with regard to the cryptocurrency industry. The Reserve Bank of India (RBI) signaled that virtual currencies like Bitcoin wouldn’t be allowed in the country underlining that those wouldn’t be using for any payments or settlements. Having said that, the RBI suggested that the technology (blockchain) won’t end as it has significant potential. Notice that banks in India are already relying on blockchain to enable overseas transactions, international remittances and other processes.

Other news related to cryptocurrencies worth looking at:

• The national investigative agency of Nepal has arrested two founders of the Bitcoin exchange Bitsewa in the ongoing crackdown in the country.
• Kazuno City (Japan) tries to attract cryptocurrency-related companies to use its renewable energy. One company has already announced that it will open “the first clean energy-based Japanese mining center” in order to mine 10 kinds of virtual currencies including Bitcoin.