The Bitcoin price fell sharply below the $11,200 level on Aug. 10, which indicated a mounting selling pressure. Still, trading vet Jim Wyckoff, who has been involved in markets for over 30 years, believes that this is not a bearish sign for the crypto king.
A much-needed pause
In his recent post on Kitco, Wyckoff suggests that the continuous sideways trading of Bitcoin futures is simply a sign that the bulls need to take a rest before another price rally. He still believes that the bulls have a technical advantage over the bears as both camps are currently playing tug-of-war.
According to CNBC, the Dow futures dropped by more than 170 points, indicating that the US stock market will take a hit during the opening bell. The US-China trade war tensions have been recently exacerbated by Hong Kong's airport canceling all flights due to ongoing protests.
However, it is not clear whether the bulls will manage to benefit from this turmoil given that the correlation between Bitcoin and the Chinese yuan is weakening.
BTC - CNH correlation weakening pic.twitter.com/ExmpRoowQq— RJ (@RJ_Killmex) August 12, 2019
Goldman predicts a new ATH
Speaking of the long-term picture, Goldman Sachs, the leading US bank, has a short-term price target at $13,971, according to a tweet posted by Three Arrows Capital CEO Su Zhu. The prediction is based on the Elliott Wave theory.
“Any such retracement from $12,916-$13,971 should be viewed as an opportunity to buy on weakness as long as it doesn’t retrace further than the $9,084 low,” the analysis says.
What is more surprising: that Goldman Sachs has a bullish target on $BTC, that they have any target at all, or that they use Elliott Wave Theory?— Su Zhu 🦁 (@zhusu) August 12, 2019
I'm personally most surprised they cant be bothered to use a chart that includes weekend price action. pic.twitter.com/ocpq7hr0qv