Bitcoin Surges Above $2500 Following Goldman's Bullish Note As 'Civil War' Ends

Bitcoin is up 40% from its weekend lows as the combination of a bullish Goldman Sachs note on the virtual currency and a major sigh of relief that the potential ‘civil war’ over cryptocurrency’s scaling solutions appears to be over (with over 80% of the hash rate currently voting for the protocol upgrade).

The entire cryptocurrency space is surging today…

As it seems the civil war may be over (with over 80% of the hash rate currently voting for the protocol upgrade), Bitcoin miners have seemingly made a decision to activate segwit with some 80% of the hash rate currently voting for the protocol upgrade with other miners expected to follow soon.

But Bitcoin is outperforming among the larger peers…

Goldman is also out with a new bullish note on Bitcoin…

Bitcoin has reached/so far held notable support at 1,857-1,789. The area includes an ABC equality target off the June high as well as the 100-dma. The 100-dma has been particularly reliable in holding pullbacks since the late-’15 lows. Moreover, due the corrective nature of the pullback, this ABC target seems like a reasonable place to watch for signs of a turn. Additionally, daily momentum is nearing similar levels to where they previously based in March. All in all, the balance of signals appear to be shifting to a more positive tone.

From a wave count perspective, this entire retracement can be viewed as a counter-trend 4th wave in a V-wave advance that started in ’11. From this perspective, it’s either completed a full ABC or only the first A leg of a 3-3-3 type correction. Either way, this 1,856-1,790 area has potential to act as strong support. The first level to note above is gap resistance at 2,159.