Goldman Sachs analyst Sheba Jafari released a new analysis of bitcoin’s outlook, calling the recent price drop below $10,000 a possible correction.
According to Zero Hedge, which published details of the client note, Jafari suggested that the market could find a base around $9,978. If the drop is actually part of a correction, prices will stabilize and even possibly reverse at this level.
“Watch for signs of a base ahead of 9,978. Setup weakens through 9,836. Turn neutral/cautious through 7,882,” Jafari wrote, according to the site.
Jafari’s analysis, which was released late Tuesday afternoon, noted that bitcoin was “nearing interesting levels” at the time.
Whether Jafari’s reasoning proves true remains to be seen, as the market turbulence that began on Tuesday continued into Wednesday’s session. According to CoinDesk’s Bitcoin Price Index (BPI), bitcoin’s price dropped to a low $9,199.59 before beginning to rebound.
The price of bitcoin is trading at roughly $10,027 as of press time. Bitcoin’s drop below $10,000 is the first time it has done so since the beginning of December 2017, as previously reported.
Slippery floor sign image via Shutterstock
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.