Tanya Abrosimova
Independent Analyst
- Goldman experts believe in digital currencies, but not in the current form.
- BTC/USD upside is capped by the long-term downside trendline.
Bitcoin price has gained nearly 15% since Monday’s low following the announcement that Goldman Sachs-backed company purchased the cryptocurrency exchange Poloniex.
While Goldman is not overly optimistic about the crypto industry, it wants to be the part of it.
According to Goldman Sachs experts, blockchain technologies have great potential and eventually may evolve into a useful tool, but cryptocurrencies are in a bubble, probably the biggest one in the modern history.
The expert believes that digital currencies have future and may be useful in terms of reducing transaction fees and making business more efficient, but not in their current form.
"The bitcoin prices are astronomical. Then we compare that to Ether, and Ether is even more astronomical. So clearly, these valuations don't make sense to us." - Sharmin Mossavar-Rahmani, the CIO of the Private Wealth Management Group at Goldman Sachs, said in the interview with Business Insider.
"Is there room for a digital currency, maybe sponsored by one of the major central banks like the Federal Reserve? Yes. Could it be incredibly useful? Could it reduce transaction costs? Yes. But not these ones."
Bitcoin price technical picture
BTC/USD has reached the critical resistance zone created by the long-term downside trendline that now comes at $10,900 and closely followed by psychological $11,000. Should the bulls manage to real this area, the upside may gain traction and take the Bitcoin price towards $11,764 (February 20 high). On the downside, the support is seen and at $10.266 (50% Fibo) and at $10,000.
BTC/USD, daily chart
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