Goldman Sachs: Bitcoin 'Has Potential' To Drop Below February Low Of $5,922

Goldman Sachs’ technical analysis team led by Sheba Jafari has recently made another Bitcoin (BTC) prediction, stating that the major cryptocurrency risks sinking below the February low, Business Insider reported on March 12.

On Sunday, the team sent a note to clients warning that the next BTC sell-off threatens dipping below the February low of $5,922. Jafari’s team suggested that the next sell-off would be caused by the break of short-term support at $9,210.

“The break is significant as implies [sic] potential for a more impulsive decline,” Jafari stated. Her team warned investors to keep an eye on BTC price, predicting that, “The next meaningful level is down at $7,667 to $7,198.”

“Getting а сlоѕе brеаk thіѕ tіmе аrоund wоuld wаrn оf ѕtruсturаl dаmаgе, іnсrеаѕіng thе rіѕk оf nеw lосаl lоwѕ (<5,922). At thіѕ роіnt, nееd tо gеt bасk thrоugh 9,322 (thе Fеb. 26th lоw) fоr thіѕ tо ѕtаbіlіzе,” Jafari’s team wrote.  

Jafari, the head of technical strategy at Goldman Sachs, is known for criticizing Bitcoin. In July 2017, Jafari suggested that Bitcoin would hit the $4,000 mark by the end of the year. Later in November 2017, when BTC reached $7,000, Jafari made another prediction stating that Bitcoin would consolidate at $8,000 before going higher.

Bitcoin’s price rallied to $20,000 in Dec. 2017 from a modest $1,000 at the beginning of the year, before sinking down to $6,048 on Feb. 6 2018. Some experts believe that the cryptocurrency downturn is mostly likely due to a $400 mln sell-off by the attorney and bankruptcy trustee of Mt. Gox, formerly the largest global Bitcoin exchange.