Goldman Sachs Strikes Bearish Note Amid Bitcoin's Price Highs

Wall Street banking giant Goldman Sachs warned its clients that the bitcoin market may be headed for bearish territory.

In a recent client note, published by finance blog Zero Hedge, chief technician Sheba Jafari, offered his view on the digital currency. It's a rare moment for Goldman, which doesn't regularly cover developments around bitcoin or cryptocurrencies.

In a recent market color report on June 12, the banking giant suggested its investor clients to be cautious about a near-term high bitcoin price of $3,134. Further, Jafari suggested that clients consider the market bullish again when the price falls to between $2,330 and $1,915.

Jafari wrote:

"It's on track to forming a bearish key day reversal if today's (June 12) close settles below 2,749. It will also form a key week version if Friday's close is below 2,475. Both daily/weekly oscillators are diverging negatively. All of this to say that the balance of signals are looking broadly heavy."

The note comes amid record-breaking highs for bitcoin, which briefly surpassed the $3,000 mark this week, as well as cryptocurrencies like ether, which touched $400 last weekend.

According to CoinDesk's Bitcoin Price Index (BPI), the cryptocurrency reached an all-time high of $3,018.55 on June 11, only to fall to a recent low of $2571.32 on June 12 at 18:00 UTC.

Image Credit: 360b / Shutterstock.com

Read more about