We know that banks are not so happy about cryptocurrencies. Indeed, they can lose against them, and they know about it. And that may be one of the reasons why Goldman Sachs believes that Bitcoin could drop under $6,000 dollars again.

Goldman Sachs Bitcoin Price Prediction

One of the most important investment banks in the world predicts that Bitcoin can drop back to $6,000 dollars and even further. It is important to mark that Since December 2018, Bitcoin lost more than 60% of its value. During February it was traded under $6,000 dollars in some exchanges. The information has been covered by Business Insider and the analysis was conducted by a team led by Sheba Jafari.

“The break is significant as implies potential for a more impulsive decline,” explains Mr Jafari. “The next meaningful level is down at 7,687-7,198; includes the 200-dma and a 1.618 target off the high.” bitcoin volatility

The team has decided to send a note to their clients explaining that Bitcoin could reach lower prices than the ones registered in February. According to Jafari, the sell-off could start by breaking the short-term support at $9,210.

Jafari’s team explained:

“The 200-dma in particular is important given that it held very well at the previous low in September. Getting a close break this time around would warn of structural damage, increasing the risk of new local lows (<5,922). At this point, need to get bac through 9,322 (the Feb. 26th low) for this to stabilize.”

In the past, Mr Jafari has criticised Bitcoin but without good results. In July he said that Bitcoin was going to hit $4,000 by the end of the year (it reached $20,000). Later in November, he said that Bitcoin would consolidate around $8,000 before reaching new highs.

Jafari’s team is not the only one that believes that Bitcoin could reach lows not seen in several months. A Bitcoin trader and analyst that usually writes at tradingview, believes that Bitcoin could test $6,000 again.

Bitcoin FUD

During the last months, there have been several attempts to put Bitcoin price down. For example, the Tether controversy, or South Korea completely banning cryptocurrency trading, among others.

Bitcoin is being now traded around $9,200 at the moment of writing this article and it is losing almost 6% in the last 24 hours. With the exception of some cryptocurrencies, the market is all operating in red. The biggest losers are Dentacoin, Electroneum and aelf. The biggest losers from the top 10 are Bitcoin Cash, NEO and Litecoin.

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Image Courtesy of Qz.com

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